NEW YORK: Oil prices slid about 4 per cent on Wednesday on reports that the US had sent Iran a 15-point proposal aimed at ending the war, prompting talk of progress toward a ceasefire.

Brent futures fell 3.96, or 3.8pc, to $100.53 a barrel at 10:41am EDT (1441 GMT), while US West Texas Intermediate (WTI) crude fell $3.57, or 3.9pc, to $88.78.

Pakistan has delivered a US proposal to Iran, and either Pakistan or Turkiye could be a venue for discussions to de-escalate the war, a senior Iranian official told Reuters on Wednesday.

Iran has denied that direct talks had taken place, and an Iranian military spokesman said the US is negotiating with itself, according to state media.

Despite market turmoil, Washington holds off tapping strategic oil reserves

“This latest price downturn largely relates to a 15-point US plan to end the war,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

“Iran has yet to indicate a positive response to the reported recent talks, and until a greater definition is forthcoming regarding major progress, the oil market will remain vulnerable to another price up-spike.”

Extreme price swings in recent weeks boosted Brent’s historic or actual 30-day close-to-close volatility to its highest since April 2022 and WTI’s volatility to its highest since June 2020.

Shipments via Hormuz

The war has all but halted shipments of oil and liquefied natural gas through the Strait of Hormuz, which typically carries about one-fifth of the world’s LNG and crude supply. The International Energy Agency (IEA) has called it the biggest-ever oil supply disruption.

The result is a daily loss of around 20 million barrels of crude, meaning after 25 days, a loss of some 500 million barrels, or five full days of global supply.

Japanese Prime Minister Sanae Takaichi asked IEA chief Fatih Birol for an additional coordinated release of oil stockpiles when they met on Wednesday, as Tokyo seeks to shield consumers from higher energy prices.

Despite the expectations of some analysts, the latest data from the US Energy Information Administration (EIA) on Wednesday showed the US did not start pulling crude out of its Strategic Petroleum Reserve (SPR) during the week ended March 20.

Iran has told the UN Security Council and the International Maritime Organisation that “non-hostile vessels” may transit the Strait if they coordinate with Iranian authorities, according to a note seen by Reuters on Tuesday.

To offset the Hormuz disruptions, oil exports from Saudi Arabia’s Red Sea Yanbu port rose to nearly four million barrels per day last week, a sharp increase from before the war broke out, shipping data showed.

Baltic ports under attack

Russia’s Baltic ports of Primorsk and Ust-Luga, major export terminals, suspended crude oil and oil products loadings on Wednesday after Ukrainian drone attacks sparked a blaze which could be seen from Finland, two sources told Reuters.

It was one of the largest strikes against Russia’s oil export facilities in the four-year war. Two stray Ukrainian military drones entered the airspace of Estonia and Latvia on Wednesday morning via Russia, one of which slammed into a chimney at a local power station while the other crash-landed, the two Baltic countries said.

US oil inventories

The US EIA said energy firms added 6.9 million barrels of crude into stockpiles during the week ended March 20.

That was higher than the 0.5m barrel build analysts forecast in a Reuters poll and the 2.4m barrel build that market sources said the American Petroleum Institute trade group reported on Tuesday.

Published in Dawn, March 26th, 2026