Key facts
- Oil prices declined as President Donald Trump stated Iran has a 'last chance' for peace.
- Brent crude fell below $79 per barrel, marking a weekly decline of over 10 percent.
- Qatar's foreign ministry reported "very progressive stages" in resolving conflict between the US and Iran.
- Drafts of a potential agreement were being circulated, though direct communication between the US and Iran was absent.
- President Trump issued renewed threats to Iran regarding access to the Strait of Hormuz.
Oil prices are moving lower for the third consecutive trading session on hopes a deal between the US and Iran could be drawing closer. Brent crude fell below $79 per barrel on Wednesday morning, bringing its weekly decline to more than 10 percent. This came as Qatar’s foreign ministry, which has helped mediate negotiations between Washington and Iran, said the two nations were in “very progressive stages” to resolve the conflict. It added drafts of a potential agreement were “being circulated” but there was no direct communication between Trump and Iran. The Trump administration has signalled some optimism with Secretary of State Marco Rubio declaring there has been progress “but not finality.” Treasury Secretary Scott Bessent said a consensus could be reached in the next few days. But caution and risk still surrounds the all-important Strait of Hormuz, which is helping keep oil prices elevated. A cargo vessel was struck by an unknown projectile in the strait and suffered a complete blackout on Tuesday, according to a report from the Marisks maritime risk management group. President Trump has renewed threats to Iran over access to the narrow waterway. “The Strait’s going to be open very soon or they are going to get hit very hard,” he said, adding “if they back out again, they are going to get hit really hard. They know that. They understand that. I have no choice.”