Oil prices drop below $100 as US-Iran dialogue hopes ease supply concerns

Oil prices fell on Tuesday, April 14, 2026, as signs of potential United States-Iran dialogue to end their war reduced concerns about supply risks stemming from the U.S. blockade of the Strait of Hormuz.

Brent futures declined by $1.86, or 1.87%, to $97.50, while U.S. West Texas Intermediate (WTI) crude fell $2.25, or 2.27%, to $96.83 by 0003 GMT.

Both benchmarks had risen in the previous session, with Brent climbing more than 4% and WTI nearly 3%, after the U.S. military began a blockade of Iran’s ports.

The U.S. military said on Monday that its blockade of the Strait of Hormuz would extend ⁠east to the Gulf of Oman and Arabian Sea, while ship-tracking data showed two ships turned around in the strait as the blockade went into effect.

Iran, in response, threatened to target ports in Gulf-bordering nations following the collapse of weekend talks in Islamabad aimed at resolving the crisis.

“Despite the breakdown of peace talks in Pakistan over the weekend, Trump has managed to take some steam out of the oil price again dangling carrot of a possible deal,” said Tim Waterer, chief market analyst at KCM Trade.

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Sources familiar with the negotiations told Reuters dialogue between Iran and the U.S. was still alive, while Pakistani Prime Minister Shehbaz Sharif affirmed ongoing efforts to de-escalate tensions. Trump said on Monday that Iran “wants to make a ⁠deal”.

ANZ analysts estimate that about 10 million barrels per day of crude supply have been effectively removed from the market, adding that a prolonged U.S. blockade could curb an additional 3 million to 4 million bpd of crude shipments.

“The oil market no longer needs a worst-case escalation to justify higher pricing levels. Tight balances alone are sufficient to sustain the price of Brent near or above ⁠recent threshold levels,” ANZ said in a client note.

NATO allies, including Britain and France, refrained from joining the blockade, advocating instead for reopening the vital waterway.