Global crude oil prices recorded a slight decline on Wednesday after US President Donald Trump indicated that rising tensions with Iran could end sooner than expected.

Brent crude oil fell by 45 cents, or 0.4 percent, to settle at $110.83 per barrel, while US West Texas Intermediate (WTI) crude slipped 27 cents, or 0.3 percent, to $103.88 per barrel.

The latest decline came after both oil benchmarks had already dropped nearly $1 on Tuesday following comments by US Vice President JD Vance regarding progress in negotiations between Washington and Tehran.

Vance said both countries appeared unwilling to restart military action, raising hopes for a possible diplomatic breakthrough and reducing immediate fears of supply disruptions in global energy markets.

However, analysts warned that uncertainty still surrounds the situation. Market experts said investors are closely watching whether the United States and Iran can reach a workable agreement, while sudden shifts in US policy continue to create volatility in oil trading.

Toshitaka Tazawa, an analyst at Fujitomi Securities, noted that even if a peace agreement is achieved, oil supplies may not quickly return to pre-conflict levels, keeping prices elevated in the near term.

Experts believe Brent crude could still touch $120 per barrel in the short term as risks linked to supply disruptions remain underestimated.

The tensions have particularly impacted the Strait of Hormuz, a critical route through which nearly one-fifth of the world’s oil supply passes. The International Energy Agency has described the situation as one of the biggest oil supply threats facing global markets.