Market News

Crude oil prices fell on Wednesday morning after Donald Trump unveiled a 15-point plan aimed at ending the conflict with Iran.

Brent crude (BZ=F) futures fell 4.9% to $95 a barrel, while West Texas Intermediate (CL=F) retreated 4.4% to $88.28 at the time of writing.

Trump said on Tuesday that the US was making progress in negotiations to end the war with Iran, while a source confirmed that Washington had sent Tehran a 15-point settlement proposal.

"Expectations of a ceasefire have risen slightly and profit-taking is leading the market," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a unit of Nissan Securities. "But the outlook remains uncertain as to whether negotiations will succeed, limiting selling."

Iran’s Revolutionary Guards said they had launched a new wave of attacks against targets in Israel, including Tel Aviv and Kiryat Shmona, as well as US bases in Kuwait, Jordan and Bahrain, according to Iranian state media.

Priyanka Sachdeva, senior market analyst at Phillip Nova, said developments in the Middle East would remain the "dominant price driver", keeping oil markets trading within a wide range in the near term.

Iran has told the United Nations Security Council and the International Maritime Organisation that "non-hostile vessels" may transit the Strait of Hormuz if they coordinate with Iranian authorities, according to Reuters.