Global oil prices have partially lost ground after a sharp jump amid uncertainty over further talks between Iran and the United States. Investors and traders are closely monitoring developments in the Strait of Hormuz, where a new escalation has jeopardized efforts to stabilize shipping in the region.

Reuters reported on the market developments. According to the publication, market participants expect more clarity on the prospects for diplomatic agreements between Washington and Tehran, as military events in recent days have heightened tensions.

Brent crude futures fell $1.42, or 1.43%, to trade at $98.16 a barrel. At the same time, U.S. West Texas Intermediate (WTI) crude fell $1.66, or 1.77%, to $92.23 a barrel.

The market had shown the opposite dynamics the day before. On Tuesday, quotes rose sharply after the US military launched new strikes on Iran. This significantly weakened the optimism that appeared over the weekend against the backdrop of expectations of a possible agreement between the US and Iran to end the war.

Iran accused the United States of violating the ceasefire by striking targets near the disputed Strait of Hormuz. Washington, in turn, stated that the actions of the US military were defensive in nature.

After reaching a ceasefire in April, which put a pause on the three-month conflict, both sides reported some progress in negotiations on opening the Strait of Hormuz. This sea route is critical for global supplies of oil and natural gas, so any instability in the region immediately affects global energy markets.

An additional factor in tensions was the intensification of Israeli bombing of Lebanon on Tuesday. Analysts say this further complicates diplomatic efforts and increases the risks to stability in the Middle East.

At the same time, the market received some positive signals. Reports that several tankers with liquefied natural gas were able to pass through the Strait of Hormuz in recent days have raised expectations of a possible resumption of full shipping. If the route opens, the world market could receive additional energy supplies.