• Oil prices dropped for the second consecutive day amid signals of US-Iran diplomatic talks.
• Brent crude fell to $94.27 and West Texas Intermediate to $90.24.
• Concerns remain over supply disruptions through the vital Strait of Hormuz.
• The US has not renewed sanctions waivers for Iranian and Russian oil.
• Analysts suggest oil prices will fluctuate until a peace deal is achieved.

Oil prices continued to decline for a second day as expectations grew that peace talks between the U.S. and Iran may resume soon. Brent crude futures fell **0.55%** to **$94.27** a barrel, while U.S. West Texas Intermediate (WTI) crude dropped **1.1%** to **$90.24**. The closure of the Strait of Hormuz, a vital waterway, due to ongoing tensions has heightened market anxieties, although hopes for renewed negotiations provide a modicum of relief, according to Bangkok Post and India Times.

Concerns surrounding the Strait of Hormuz continue to affect market stability, as this passage carries approximately **20%** of global oil and natural gas shipments. With a blockade of shipping from Iranian ports imposed by the U.S., trade has been severely impacted, and both analysts and traders remain cautious. The Schork Group noted that while there are diplomatic signs, the "physical reality remains fragmented," emphasizing a precarious balance between optimism and caution, according to Reuters and India Times.

The White House's recent remarks expressing optimism regarding the negotiations with Iran have added another dimension to the fluctuating oil prices. Treasury Secretary Scott Bessent indicated that the U.S. will not renew sanctions waivers that have allowed some degree of oil trade with Iran and Russia. As supply concerns combine with fluctuating investor sentiment, prices are expected to remain volatile, with predictions suggesting WTI could swing between **$80** and **$100** until a peace agreement is reached, reports Bangkok Post, Reuters, and India Times.