Global oil prices drop below $105 a barrel on hopes the U.S.-Iran war will soon end

By Isabel Wang and Myra P. Saefong

The EIA on Wednesday reported a significant drop in U.S. crude oil inventories, but oil prices mainly reacted to the potential de-escalation in Iran

President Donald Trump suggested Wednesday that a deal with Iran is close, while oil prices pulled back.

Oil futures were extending their declines on Wednesday after President Donald Trump suggested that a deal with Iran was close, raising hopes for a resolution to the months-long stalemate in the Middle East.

West Texas Intermediate crude saw its most-active July contract (CL.1) (CLN26) fall 5.4% to $98.58 a barrel, while Brent crude futures for July delivery (BRN00) (BRNN26) were off 5.7% at $104.98 a barrel, according to FactSet data.