Oil prices edged lower today as investors reacted to renewed optimism surrounding potential U.S.-Iran negotiations that could ease supply disruptions in the Middle East.

Brent crude fell to around $94.94 per barrel, while U.S. crude dropped below $89, reversing part of the sharp gains seen earlier this week.

The decline comes after signals that diplomatic talks may resume, raising hopes that restrictions in the Strait of Hormuz—a route responsible for nearly 20% of global oil flows—could be lifted.

However, the situation remains fragile. Iran has not confirmed participation in negotiations and continues to cite ceasefire violations as a barrier to talks. Analysts warn that supply disruptions could persist, with worst-case scenarios potentially pushing oil prices toward $110 per barrel in Q2 2026.

For businesses, fluctuating oil prices are creating uncertainty across sectors such as aviation, logistics, and manufacturing. Energy-importing countries are particularly vulnerable to price volatility.

Looking ahead, markets will closely monitor diplomatic progress. A successful agreement could stabilize prices, while further escalation could trigger another sharp spike in global energy costs.

Source : Reuters.