Oil prices fell more than 5% Wednesday after U.S. President Donald Trump said that Washington and Tehran are “in negotiations right now” and indicated Iran is keen to reach a peace agreement, despite the Islamic Republic denying any direct talks with the U.S.
International benchmark Brent crude futures fell nearly 6% to $98.31 per barrel, while U.S. West Texas Intermediate futures were also down 5% at $87.65 per barrel.
Speaking from the Oval Office, Trump said he had pulled back from his earlier threat to launch strikes on Iranian energy infrastructure “based on the fact we’re negotiating.”
“They’re talking to us, and they’re talking sense,” Trump said when asked to elaborate on the shift.
Later Tuesday, The New York Times reported, citing two unnamed officials, that the U.S. had sent Iran a 15-point proposal aimed at ending the war.
