Oil prices fall as Iran reviews US Gulf peace proposal
Oil prices fell 3% Wednesday as Iran reviewed a U.S. proposal to end the Gulf war. Domestic crude inventories also rose by 6.9 million barrels last week.
Global oil prices retreated on Wednesday as investors weighed the potential for a diplomatic breakthrough in the Middle East. Brent futures dropped 3.0% to settle at $101.36 a barrel, while West Texas Intermediate crude fell 2.5% to $90.07. The downward trend followed reports that Iran is reviewing a 15-point peace proposal from the United States intended to halt a conflict that has paralyzed energy exports from the Persian Gulf.
Tehran has not yet issued a formal response to the plan, which was delivered by Pakistan on behalf of Washington. Despite public rhetoric dismissing the possibility of negotiations, the delay in rejecting the proposal has introduced a measure of cautious optimism into the market. Analysts at Ritterbusch and Associates noted the fragility of the current price environment:
