TOKYO: Brent crude oil, the global market benchmark, dropped close to 6 per cent on Wednesday (Mar 25) after US President Donald Trump sent a peace plan to Iran.
At around 12.30am GMT, a barrel of Brent crude was down 5.92 per cent at US$98.30. Benchmark US oil contract, West Texas Intermediate, was down 5.01 per cent at US$87.72.
In Asian markets, Japan’s Nikkei index and South Korea’s Kospi were up by more than 3 per cent.
Trump sent a peace plan to Iran as he voiced optimism Tuesday at ending nearly a month of war, with Tehran announcing that it will let “non-hostile” oil vessels go through the crucial Strait of Hormuz.
The tentative signs of a diplomatic solution came despite new violence, with an Iranian missile causing injuries in Israel, which in turn pressed on multiple fronts and vowed to seize control of a strip of southern Lebanon.
The fall in oil prices on Wednesday came after prices jumped a day earlier, with traders turning cautious over the prospect of a negotiated agreement to end the war.
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