U.S. crude oil falls below $100 per barrel after Trump says Iran talks in

U.S. crude oil prices fell more than 4% on Wednesday after President Donald Trump said talks with Iran are in the final stages.

West Texas Intermediate futures fell nearly 6% to $98.05 per barrel by 12:50 p.m. ET. International benchmark Brent futures also lost nearly 6% to $104.92 per barrel.

Trump said earlier in the week that he called off renewed military strikes against Iran to give more time for diplomacy at the request of Gulf Arab allies.

The president told reporters earlier Wednesday that the administration was in the “final stages” of negotiations with Iran, according to a pool report.

Trump has repeatedly made optimistic statements about reaching a deal with Iran and a quick end to the war, only for tensions to escalate again between Washington and Tehran.

Iran and the U.S. have been in a stalemate for weeks now as Tehran blockades the Strait of Hormuz and Washington blockades Iranian ports. Hormuz is one of the world’s most important trade routes for oil and gas supplies.

Citibank warned Tuesday that the market is underpricing the risk of a long disruption to oil supplies in Hormuz. It expects Brent to trade up to $120 per barrel in the near term.

“It appears increasingly likely, in our view, that the Iranian regime will disrupt SoH flows for some time,” Citi analysts told clients.

Oil prices could approach $200 per barrel in a worst-case scenario where Hormuz remains closed through the end of the year, according to an analysis published by Wood Mackenzie on Wednesday.

However, prices would sharply fall if the U.S. and Iran reach a quick peace that opens Hormuz by June, according to Wood Mackenzie. Spot Brent prices would ease to around $80 per barrel by the end of 2026 in this scenario, the consulting firm said.