As of 0043 GMT, Brent crude futures were down 37 cents, or 0.5%, at $76.71 per barrel. US West Texas Intermediate (WTI) crude also fell 36 cents, or 0.5%, to $72.85 per barrel. Both benchmarks had dropped nearly 1% on Tuesday, touching their weakest levels since early March.
Crude prices have remained under pressure after the US granted Iran a 60-day sanctions waiver following the initial round of peace negotiations, allowing Tehran to resume oil sales. The easing of hostilities in Lebanon has also contributed to improved market sentiment.
“Crude oil prices were weighed down by hopes of easing US-Iran tensions and a recovery in oil shipments through the Strait of Hormuz,” said Tomomichi Akuta, Senior Economist at Mitsubishi UFJ Research and Consulting.
He added that further advances in nuclear negotiations could potentially push oil prices back towards levels seen before the conflict began.
On Tuesday, Oman and Iran agreed to continue discussions regarding the future management of navigation through the Strait of Hormuz. Meanwhile, US Secretary of State Marco Rubio said that any attempt by Iran to impose transit charges on vessels using the waterway would be inconsistent with international law.