Global oil prices dropped sharply after reports emerged that U.S. President Donald Trump had sent a peace proposal to Iran, raising hopes of easing tensions tied to the ongoing conflict.
Brent crude, the international benchmark, recorded a significant decline on Wednesday, falling by nearly six percent. The price slipped by 5.92% to settle at $98.30 per barrel.
Similarly, the U.S. benchmark, West Texas Intermediate (WTI), also posted losses, dropping 5.01% to trade at $87.72.
The downturn followed reports that Washington had put forward a peace initiative to Tehran. According to Agence France-Presse, the proposal is part of efforts to resolve tensions involving the United States, Israel, and Iran.
Earlier, Reuters reported that the plan consists of 15 points aimed at addressing the conflict, citing a source familiar with the matter.
The New York Times also detailed the development, noting that the proposal was reportedly delivered through Pakistan, based on information from two officials.
However, uncertainties remain around the initiative. It is still unclear how much of the proposal has been formally communicated to Iranian authorities or whether Tehran is willing to consider it as a basis for negotiations.
The conflict, now entering its fourth week, continues to have widespread global impact, contributing to economic strain and affecting energy markets worldwide.
