Oil Prices Fall 2 Percent as Hopes of Iran-US Peace Ease Market Pressures
NEW YORK - Global oil prices weakened by around 2 percent at the close of trading on Wednesday (25/3/2026) local time, or Thursday morning (26/3/2026) WIB, as hopes emerged that the conflict in the Middle East might subside after Iran considered a proposal from the United States (US) to end the war.
Citing Reuters, Brent crude oil prices fell by $2.27 or 2.2 percent to $102.22 per barrel. In the previous trading session, Brent prices had even plunged by up to 7 percent.
Meanwhile, West Texas Intermediate (WTI) crude oil also dropped by $2.03 or 2.2 percent to $90.32 per barrel.
On the other hand, White House spokesperson Karoline Leavitt stated that US President Donald Trump would take tougher steps if Iran does not acknowledge that they have been “militarily defeated”.
However, Iranian officials have openly shown rejection of the possibility of negotiations with the Trump administration.
Nevertheless, Iran’s delay in providing an official response to the 15-point proposal delivered through Pakistan indicates internal deliberations in Tehran.
Analysts from Ritterbusch and Associates assess that future oil price movements will still be heavily influenced by developments in that conflict.
“The oil market will continue to fluctuate up and down following news of the Iran war, as the White House seeks to highlight ongoing talks, while Iran’s refusal to acknowledge progress in discussions will limit further price declines,” they wrote.
The ongoing war has nearly halted shipments of oil and liquefied natural gas through the Strait of Hormuz, a vital route that typically carries about one-fifth of the world’s oil and LNG supply.
The International Energy Agency (IEA) has even described this disruption as the largest oil supply interruption ever to occur.
As a result, around 20 million barrels of oil per day have been lost from the market, with total losses reaching approximately 500 million barrels since the war began on 28 February 2026.