Oil prices fell around 3% on Wednesday as traders weighed up progress in U.S.-Iran peace talks against renewed hostilities.
Brent crude futures fell $2.67, or 2.68%, to $96.91 a barrel by 1139 GMT, while U.S. West Texas Intermediate (WTI) crude lost $3.43, or 3.65%, to $90.46 a barrel. The losses dented Brent's gains from Tuesday.
July Brent futures rose 3.6% in the previous session after the U.S. carried out new strikes in Iran, hurting hopes that had risen over the weekend that Washington and Tehran would reach a peace deal.
Tehran has committed to restore commercial traffic through Hormuz to pre-war levels within one month of an agreement with the U.S., according to a Reuters report citing Iranian state television.
However, Iran will manage ship traffic through Hormuz in cooperation with Oman, state television said. U.S. military forces would withdraw from the vicinity of Iran and lift the naval blocakde, the reports said.
The reports come as Iran and the U.S. teeter on the edge between a deal and a renewed round of military escalation. U.S. forces launched strikes in southern Iran this week in a move the Pentagon described as defensive. Tehran vowed to retaliate for the attacks.
