Brent crude drops below $100 as US-Iran deal hopes outweigh inventory draw

Brent crude oil fell below $100 per barrel on Wednesday afternoon for the first time in about a month, as hopes for a US-Iran deal outweighed an unexpected decline in American crude inventories. The nearest Brent contract traded at $98.90, down 4.5% from Tuesday's close. The selloff accelerated despite the Energy Information Administration reporting a larger-than-expected drawdown of 865,000 barrels, suggesting geopolitical factors, not US supply, are driving the market. President Donald Trump downplayed immediate strikes on Iran, while Tehran signaled it could reopen the Strait of Hormuz within two days. This marks Brent's third consecutive daily loss, following a 7.6% drop on Monday. A close below $100 would be the first since September 22, with traders watching for a signed US-Iran agreement as the key risk factor.