Oil prices fell about 4% on Wednesday, March 25, amid prospects of a possible ceasefire that could ease supply disruptions from the key Middle East oil-producing region, after reports that the United States had handed Iran a 15-point plan to end the war between them.
This is reported by Economic Pravda with reference to Reuters.
The report said that Brent crude futures fell by USD 4.89, or 4.7%, to USD 99.60 a barrel, after falling to a low of USD 97.57.
U.S. West Texas Intermediate (WTI) crude futures fell by USD 3.54, or 3.8%, to USD 88.81 a barrel, after falling to USD 86.72.
Both benchmarks rose nearly 5% on Tuesday, but later pared gains amid volatile trading after the main session closed.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, whose unit is part of Nissan Securities, said that expectations for a ceasefire had risen somewhat and the market was moving under the influence of profit-taking.
But the strategist added that the outlook remained uncertain about whether the talks would succeed, which was holding back selling.
On Tuesday, US President Donald Trump said the United States was making progress in talks to end the war with Iran, and a source confirmed that Washington had handed Tehran a 15-point settlement proposal.
Israel's Channel 2 reported that the US was seeking a month-long ceasefire to discuss the plan, which would involve dismantling Iran's nuclear program, ending support for proxy groups and restoring the Strait of Hormuz.
As Ukrainian News Agency earlier reported, oil prices fell on Friday, March 20, as leading European countries and Japan proposed joining forces to unblock shipping through the Strait of Hormuz, and the United States announced plans to increase oil supply.
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