On Wednesday, US WTI crude oil prices fell by over 6%, as traders assessed developments in US-Iran peace talks alongside renewed hostilities between the two nations.

As of the latest update, WTI crude was down 6% on the day, trading at $88.17 per barrel.

Commenting on Wednesday's decline, PVM analyst Tamas Varga stated, "There has been notable progress in resolving the crisis, with an increasing number of vessels passing through this critical chokepoint. This is why downward pressure has reemerged."

In the previous trading session, July Brent crude futures had risen 3.6%, following new US strikes on Iran, which dampened market hopes for a peace agreement between Washington and Tehran by the weekend.

Analysts at Commerzbank noted on Wednesday, "Recent US strikes on Iranian missile facilities and vessels suspected of laying mines in the Strait of Hormuz have somewhat undermined hopes for a framework agreement to end the conflict. Nevertheless, confidence remains relatively high among market participants."

Iran stated on Tuesday that the US had violated the ceasefire by striking targets near the disputed Strait of Hormuz, while Washington defended the actions as defensive. Israel intensified its bombardment of Lebanon on Tuesday, further complicating peace efforts.

Following a three-month conflict that resulted in a ceasefire in April, both sides have reported progress in negotiations to reopen the Strait of Hormuz, a crucial global passage for oil and gas flows.

Despite this, recent reports indicating that some LNG tankers have transited the strait have bolstered market expectations that the waterway may reopen soon, which would increase global supply.