March 25, (V7N) — Brent crude oil prices fell nearly 6% on Wednesday after US President Donald Trump sent a peace proposal to Iran, raising hopes of a resolution to the ongoing conflict. As of 0030 GMT, Brent crude was down 5.92% at $98.30 per barrel, while the benchmark US oil contract, West Texas Intermediate (WTI), dropped 5.01%, trading at $87.72.

The significant price decline follows a surge in oil prices on Tuesday, as markets reacted to the uncertainty surrounding the war in the Middle East. Traders are now exercising caution after tentative signs of a diplomatic breakthrough emerged. Iran announced it would allow "non-hostile" oil vessels to pass through the crucial Strait of Hormuz, which controls a significant portion of global oil shipments.

Despite the optimistic news of peace talks, the conflict continues to intensify. Iranian missile strikes injured several people in Israel, which in turn escalated tensions by threatening to seize control of southern Lebanon. Despite this, the announcement of potential talks has provided some hope for a peaceful resolution, leading traders to reassess their positions.

In Asia, stock markets showed signs of optimism, with Japan's Nikkei index and South Korea's Kospi both climbing more than 3%. The news of a potential peace plan has sparked cautious optimism, though concerns about ongoing violence remain.

The drop in oil prices follows a day of rising prices, with traders becoming more cautious as they await further developments in the negotiations.

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