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(RTTNews) - Oil prices extended losses on Thursday, after having fallen nearly 8 percent in the previous session on optimism over a potential U.S.-Iran peace deal.
Brent crude futures for July delivery were down 2.4 percent at $98.83 a barrel following positive indications from Iran and the U.S. regarding diplomatic efforts to ease tensions. WTI crude futures fell 2.7 percent to $92.54.
U.S. President Donald Trump said he has had "very good talks" with Iran over the past 24 hours and it is "very possible" that there will be a deal before his scheduled trip to China next week.
At the same time, Trump threatened to resume bombardment if negotiations fail apart. Tehran said it was reviewing the latest peace proposal and exchanging diplomatic messages via mediator Pakistan.
U.S. and Iranian diplomats are working on an agreement to restart negotiations, the Wall Street Journal reported.
Saudi Arabian state-owned news site AI Arabiya said intense talks are continuing to establish a framework for opening the Strait of Hormuz.
Earlier, reports emerged that the U.S. and Iran are getting close to an agreement on a one-page memorandum of understanding.
Axios reported that the deal would include Iran committing to a moratorium on nuclear enrichment and both sides lifting restrictions around transit through the Strait of Hormuz.
Even if the Strait of Hormuz is opened today, analysts say that it will take several months to restart shut-in wells, repair the damage from attacks on energy infrastructure across the region and restore flows.
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