Shafaq News
Oil prices pulled back from recent highs on Wednesday,erasing some of the previous day's 4% gain as traders sought clarity on complexnegotiations between Iran and the U.S. after renewed hostilities set backefforts to reopen the Strait of Hormuz.
Brent crude futures fell $1.42, or 1.43%, to $98.16 a barrelas of 0253 GMT, while U.S.West Texas Intermediate (WTI) crude lost $1.66, or 1.77%, to $92.23 a barrel.
Oil surged on Tuesday after the U.S. military carried outnew strikes in Iran, hurting hopes over the weekend that the United States andIran would reach an agreement to end the war.
Iran said on Tuesday the United States had violated aceasefire by striking targets near thecontested Strait of Hormuz, while the U.S. said its strikes were defensive innature.
Following an April ceasefire in the three-month longconflict, both sides indicated they had made progress on talks toward reopening the Strait, a keyconduit for global oil and gas flows. But rising hostilities now threaten thosenegotiations.
Israel rampedup bombing on Lebanon on Tuesday, further straining peace efforts.
Nevertheless, the news that some LNG tankers have passed through the strait in recentdays lifted expectations that the waterway might reopen soon, which would addto global supply.
(Reuters)
Only the headline is edited by Shafaq News Agency.
