Global oil prices fell sharply on Wednesday, with Brent crude slipping below $100 a barrel for the first time in a month as diplomatic efforts to ease the US-Iran conflict raised hopes of a reduction in regional tensions.
Brent crude, the international oil benchmark, dropped $4.90, or 4.73%, to $98.70 a barrel by 1615 GMT, extending its decline into a third consecutive trading session.
US West Texas Intermediate (WTI) crude also recorded substantial losses, falling $4.26, or 4.43%, to $91.85 a barrel, its lowest level in approximately three weeks.
The decline came as Qatar and Pakistan continued efforts to facilitate dialogue between Washington and Tehran, while financial markets assessed the implications of Tuesday’s US midterm elections, in which Democrats secured control of Congress.
Qatar’s Foreign Ministry spokesperson, Majed Al Ansari, said on Tuesday that American and Iranian officials were considering proposals following talks between a Qatari delegation and Iranian representatives in Tehran.
The discussions, held on Monday, lasted approximately three hours.
Al Ansari described the willingness of both sides to remain engaged in negotiations as a “glimmer of hope”, although he acknowledged that mediators had not yet secured a breakthrough.
He also criticised an attack targeting the Qatari gas carrier Al Mayeda, warning that threats to commercial shipping in the Gulf could undermine regional security and obstruct diplomatic progress.
European natural gas markets followed oil prices lower on Wednesday, reversing gains recorded earlier in the session.
Futures at the Dutch Title Transfer Facility (TTF), the principal European gas pricing benchmark, declined 4.59% to €87.40 ($98.10) per megawatt-hour after briefly exceeding €93 earlier in the day.
Despite the price retreat, concerns remain over Europe’s energy supplies as colder weather approaches.
Natural gas storage facilities across the continent were reported to be less than 75% full, raising questions about the region’s ability to meet increased heating demand during the coming weeks.
Germany’s storage levels stood at approximately 61%, considerably below the government’s 70% target.
While the latest decline in energy prices suggests that traders are responding to renewed diplomatic activity, uncertainty surrounding the US-Iran conflict and the security of Gulf shipping routes continues to weigh on the outlook for global energy markets.