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Oil Prices Plunge Over 5% as Trump Claims Iran Negotiations, Tehran Denies Talks

Oil prices dropped over 5% on Wednesday, with Brent crude falling nearly 6% and WTI down 5%, following President Trump's claim of U.S.-Iran negotiations, which Iran denied. Trump cited these talks as the reason for halting threats against Iranian energy sites. A U.S. 15-point proposal was reportedly delivered to Iran via Pakistan, but its reach among Iranian officials and Israel's backing are unclear. The market reaction underscores the impact of diplomatic signals on oil volatility. This event highlights ongoing tensions and potential shifts in Middle East policy. The situation remains fluid with limited official confirmation from Iran.

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Oil Prices Plunge Over 5% as Trump Claims Iran Negotiations, Tehran Denies Talks

Oil prices fell sharply on Wednesday, dropping more than 5%, after U.S. President Donald Trump asserted that Washington and Tehran are engaged in negotiations, a claim Iran has denied.

Market Reaction

  • Brent crude futures fell nearly 6% to $98.31 per barrel.
  • U.S. West Texas Intermediate futures dropped 5% to $87.65 per barrel.

Trump's Statement

  • Speaking from the Oval Office, Trump said he withdrew his threat to launch strikes on Iranian energy infrastructure due to ongoing negotiations.
  • He stated, "They're talking to us, and they're talking sense," referring to Iran's engagement.
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U.S. Proposal Details

  • The New York Times reported, citing two unnamed officials, that the U.S. sent a 15-point proposal to Iran via Pakistan aimed at ending the conflict.
  • It is unclear how widely this proposal has been circulated among Iranian officials.

International Uncertainties

  • Israel's support for the U.S. proposal remains uncertain, as it continues attacks on Iran alongside the U.S.
  • The plan has not been broadly disseminated, adding to the ambiguity.

Context

  • The price decline reflects market sensitivity to geopolitical developments and potential de-escalation in the Middle East.
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