Brent crude fell about 1 percent to $98.30 a barrel after dropping below $100 on Tuesday. US West Texas Intermediate (WTI) also declined by 1.4 percent to $89.49 a barrel.
The latest decline puts both oil benchmarks on track for their longest losing streak since August 2025, continuing a downward trend that began late last week.
The fall in prices followed reports of the first US-Iran talks in several months. The discussions have raised expectations that an agreement could eventually lead to the reopening of the Strait of Hormuz, an important route for oil shipments.
US President Donald Trump said on Tuesday that US and Iranian representatives had “a very good meeting” and that another meeting was scheduled “in the very near future.”
“The meeting of US and Iranian delegations in New York has given traders a glimmer of hope,” Tim Waterer, chief analyst at KCM Trade, told Reuters.
“Despite the continued tough rhetoric, including threats of ‘annihilation,’ the market is choosing to price in the possibility of talks,” Waterer said.
Attention is also on the possible restoration of Saudi Arabia’s East-West oil pipeline, which provides an alternative route for moving crude without passing through the Strait of Hormuz.
The pipeline, which serves as Saudi Arabia’s main route for bypassing the strait, was shut for more than 10 days following drone attacks on September 10.
Operations have since resumed at a low rate, while Saudi oil giant Aramco works to restore flows to around 4 million barrels per day within the coming weeks.
The possible recovery of the pipeline, combined with renewed diplomatic contacts between the US and Iran, has helped reduce concerns over oil supply disruptions that emerged during the recent instability in the Middle East.
