Oil prices fall sharply on hopes of talks with Iran, Brent drops below $100

Oil prices are falling sharply today after reports that the United States sent Iran a 15-point proposal aimed at ending the war in the Middle East. This has raised hopes for a ceasefire that could ease supply disruptions in the region, Reuters reported. The price of North Sea Brent crude fell below the psychological threshold of $100 a barrel.

Shortly before 9:00 CET, Brent was down approximately 4.8 percent to around 99,50 dollars a barrel. US light crude WTI was down about four percent at the same time, below 88,60 dollars a barrel.

"Expectations of a ceasefire have risen slightly, and the market is being driven by profit-taking," said Hiroyuki Kikukawa, chief analyst at Nissan Securities Investment.

"The outlook for successful talks remains uncertain, however, limiting the sell-off," he added.

US President Donald Trump said on Tuesday that the United States had made progress in talks to end the war with Iran. A Reuters source then confirmed that Washington had sent Iran a 15-point proposal to settle the conflict.

Israel's Channel 2 reported that Washington is seeking a one-month ceasefire to discuss a plan that includes dismantling Iran's nuclear program, ending support for armed groups in the region and reopening the Strait of Hormuz. The strait is crucial for oil and natural gas exports from Middle Eastern countries.

The war began on the last day of February with a US-Israeli attack on Iran. Before the war began, roughly one-fifth of the world's oil and gas supplies passed through the Strait of Hormuz. Shipping through the strait has virtually ground to a halt because of threats from Iran.

Oil prices in dollars per barrel (about 159 litres):