US-Iran Talks Drive Oil Below $90

WTI futures for May delivery traded at $88.82 a barrel, down 2.70 percent, extending Tuesday's nearly eight percent plunge. Brent crude for June settlement stood at $95.34 a barrel, down 4.05 percent.

The United States and Iran are preparing for a second round of negotiations, potentially in Pakistan, to extend a fragile ceasefire before its expiration next week. Simultaneously, the US maintains naval operations restricting Iran's oil exports through the Strait of Hormuz, a critical chokepoint for nearly a fifth of global seaborne oil.

Tehran is considering a short-term pause in shipments through the waterway to avoid direct confrontation. US President Donald Trump indicated talks will resume "over the next two days," while the administration also plans to let a temporary waiver for Iranian crude purchases expire, further tightening sanctions, according to the US Treasury Department.

Analysts describe the conflict as an "unprecedented supply shock," leading to surging physical crude premiums and tightening refined fuel markets. The International Energy Agency warned global oil consumption will contract this year if elevated prices persist.