Oil prices fell Wednesday, reversing earlier gains as market uncertainty and fragile sentiment kept traders cautious despite signals of easing tensions in the Middle East.
Brent crude for June declined 1% to $102.91 per barrel, after touching $98.35. U.S. WTI futures dropped 1.4% to $99.94.
Losses extended from the previous session, when Brent settled over $3 lower amid unconfirmed reports suggesting a potential easing of regional tensions.
Comments from U.S. officials indicating a possible near-term resolution added volatility, though markets remain unconvinced about the speed of normalization.
Analysts warn that disruptions in the Strait of Hormuz could persist, with shipping backlogs and supply chains requiring time to stabilize fully.
Even if transit resumes, clearing congestion may delay a return to normal flows, keeping supply risks elevated in the near term.
OPEC output fell by 7.5 million barrels per day in March, reflecting production cuts as storage capacity tightened amid ongoing disruptions.
Meanwhile, Saudi Arabia may raise May crude prices to Asia to record levels, highlighting continued pressure from tight global supply conditions.
