Oil prices fell Wednesday after Secretary of State Marco Rubio said the United States would give negotiations with Iran “every chance to succeed.”
West Texas Intermediate Futures fell 4.12% to $90.02 per barrel as of 1:10 p.m. ET. International reference Brent oil slipped 3.82% to $95.78 a barrel.
Speaking at a Cabinet meeting at the White House, Rubio said talks with Iran had made progress. President Donald Trump prefers diplomacy but has other options if that doesn’t work, Rubio said, likely in reference to further military strikes.
“Ultimately, we prefer the negotiated diplomatic route and we will give it every chance to succeed,” the secretary of state said.
Trump said he would not allow Iran to control the Strait of Hormuz as part of a deal. Before the war, approximately 20% of the world’s oil reserves passed through Hormuz.
Earlier, Iranian state television said Tehran had pledged to restore commercial traffic through Hormuz to pre-war levels within a month of a deal with the United States, according to Reuters.
The report, which envisions Iran managing maritime traffic across the strait with the cooperation of Oman, comes as negotiations are underway.
But the White House said in a social media post that reports of a memorandum of understanding were “a complete fabrication.”
Iran and the United States have oscillated this week between an agreement and a new military escalation. American forces launched strikes in southern Iran in a move that the Pentagon described as defensive. Tehran has promised to respond to the attacks.
Industry veterans doubt that oil flows will quickly return to pre-war levels.
It will take at least four months to return oil flows to 80% of normal levels, even if the U.S.-Iran conflict ends immediately, said Sultan Ahmed al-Jaber, head of the oil administration. Abu Dhabi National Oil Company.last week. It will be necessary to wait until the first or second quarter of 2027 for flows to fully normalize, he said.