US-Iran Negotiations Open, Oil Prices Fall

NEW YORK, KOMPAS.com - Global oil prices weakened at the close of trading on Tuesday (21/4/2026) local time, or Wednesday (22/4/2026) morning WIB, reversing the sharp gains from the previous day.

The decline came amid hopes that peace negotiations between the United States (US) and Iran would soon take place, potentially reopening energy supplies from the Middle East region.

Citing CNBC, Brent crude oil prices fell 95 cents, or about 1%, to $94.53 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude for the May contract dropped $1.54, or 1.72%, to $88.07 per barrel.

This drop followed a day where prices had surged sharply, with Brent rising 5.6% and WTI soaring 6.9%.

The increase was triggered by Iran’s re-closure of the Strait of Hormuz, as well as the US seizure of an Iranian cargo ship as part of the blockade against the country’s ports.

Citi analysts in their note stated that the market currently sees opportunities for an extension of the ceasefire or even a broader agreement.

“We still tend to see the signing of a memorandum of understanding and/or extension of the ceasefire this week, which could potentially evolve into a broader agreement,” the Citi analysts wrote.

“Nevertheless, we remain prepared to shift to a scenario of more prolonged disruptions if this week’s negotiations fail,” they added.

A senior Iranian official said that his country is still considering participating in peace talks in Pakistan, in line with Islamabad’s efforts to end the US blockade.

“Iran will not negotiate under threat,” he stated.

Currently, shipping activity in the Strait of Hormuz, a vital route carrying about one-fifth of the world’s oil supply, remains limited.

This situation has raised concerns about global energy supplies.