Crude oil prices continued to recede towards pre-war levels on Wednesday as the United States and Iran remained engaged in peace negotiations in Switzerland.
The global benchmark Brent crude fell around 0.80 percent to trade near the $76.50 per barrel mark.
US benchmark West Texas Intermediate (WTI) crude also declined 0.60 percent to $72.60 per barrel during Asian trading hours.
For comparison, Brent crude was trading around the $73 per barrel mark on February 27, a day before the conflict began.
The latest decline in oil prices came as the United States and Iran continued to make progress on the diplomatic front.
The negotiations have already resulted in the United States agreeing to waive sanctions on Iran’s oil industry for a period of 60 days while both sides continue discussions on a broader agreement.
However, Qatar has cautioned that restoring shipping traffic through the Strait of Hormuz to pre-war levels will take time.
Speaking to the Financial Times, Qatar’s Prime Minister said the country would oppose any attempt by Iran to impose transit fees on vessels using the strait.
“This is against international protocol. For a country like Qatar, it is our only water corridor,” he said.
There were also conflicting statements regarding nuclear oversight in Iran.
While US President Donald Trump said Iran had agreed to allow nuclear inspections, Tehran denied those claims, highlighting that differences remain between the two sides.
As conditions in the Strait of Hormuz improve, the United Nations’ International Maritime Organization (IMO) has started efforts to evacuate more than 11,000 sailors stranded in the region.
According to Al Jazeera, IMO Secretary-General Arsenio Dominguez said the operation would be conducted in close cooperation with Iran, Oman, other coastal states, the United States and the maritime industry.
Analysts believe oil prices could ease further if diplomatic progress continues and supply flows through the Strait of Hormuz return to normal levels.
