Oil prices drop on U.S. Iran negotiation hopes

March 25, 2026 (MLN): Oil prices fell Wednesday after U.S. President Donald Trump indicated that Washington and Tehran are “in negotiations right now,” suggesting that Iran is interested in a potential peace agreement.

This came despite the Islamic Republic denying any direct talks with the U.S.

Currently, Brent crude futures went down by $4.99, or 4.78%, to $99.50 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures decreased by $3.84, or 4.16%, to $88.51 per barrel by [12:50 pm] PST.

Speaking from the Oval Office, Trump confirmed that he had stepped back from his previous threat to strike Iranian energy infrastructure.

“I’ve pulled back based on the fact we’re negotiating,” he said. When pressed for details, the president added, “They’re talking to us, and they’re talking sense,” as reported by CNBC.

On Tuesday, The New York Times reported that the U.S. had sent a 15-point proposal to Iran, intended to bring an end to ongoing hostilities.

The proposal, reportedly delivered via Pakistan, remains largely confidential, with unclear circulation among Iranian officials.

It is also uncertain whether Israel, actively conducting attacks on Iran alongside the U.S., supports the plan.

Iran’s top joint military command spokesperson warned that oil markets are unlikely to stabilize until regional security is fully established under Iranian military control, according to Reuters.

The bank noted that recent price swings are being driven more by shifts in perceived worst-case scenarios than by changes in the baseline supply outlook.

Copyright Mettis Link News