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Oil prices fell below $100 a barrel on Wednesday after President Donald Trump said the U.S. is in the "final stages" of negotiations with Iran.
By mid-afternoon, WTI futures were down close to 6%, hitting $98.05 a barrel. Brent, the international benchmark, shed a similar amount to trade at $104.92 a barrel.
Gulf Arab allies had urged Trump to stand down from renewed military strikes against Iran, and earlier this week he did so, citing the need for more time for diplomacy. He has made optimistic statements about reaching a deal on multiple occasions over the past several weeks, only for tensions between Washington and Tehran to rise again.
An Arab media report added to optimism in the market. Arab media outlet Al Hadath, as cited by Investor's Business Daily, reported that Pakistan's army chief Asim Munir has a trip to Iran planned for Thursday, where he is set to present the final draft of a proposed U.S.-Iran agreement. Pakistan has played a role in mediating between the two sides.
