Oil prices fell in Asian trading on Wednesday, although Brent crude remained above $100 a barrel, as Middle East strikes continued despite talks of de-escalation.

As of 21:18 ET (01:18 GMT), Brent Oil Futures expiring in May fell 3.8% to $100.51 per barrel, while West Texas Intermediate (WTI) crude futures declined 3.1% to $89.50 per barrel.

Brent oil had slipped to as low as $97.15/barrel earlier in the day.

The decline followed reports that the United States had sent Iran a 15-point plan aimed at ending the war in the region, raising hopes for a ceasefire and reduced risks to key oil shipping routes, including the Strait of Hormuz.

U.S. President Donald Trump said Washington was “in negotiations right now” with Iran, adding that Tehran was “talking sense” and appeared eager to strike a peace deal.

However, media reports said Israel struck Iran’s capital, Tehran, on Wednesday, even as the U.S. signalled potential diplomatic progress.

Trump had earlier described talks with Iran as “productive” on Monday, but Iranian officials denied that any negotiations had taken place.

Oil markets had rallied sharply in recent sessions on fears that escalating tensions could disrupt supplies from the Middle East, a key producing region. Concerns had centred on the Strait of Hormuz, a critical chokepoint for global crude flows.

Wednesday’s sharp selloff reflected a rapid unwinding of the geopolitical risk premium, as traders reacted to signs that tensions could ease.

Analysts said that while the prospect of de-escalation pressured prices, conflicting signals from Washington and Tehran were likely to keep markets volatile.