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LONDON, May 7 (Reuters) - Oil prices extended losses on Thursday, sliding around 2% to below $100 a barrel on renewed hopes for a U.S.-Iran peace deal that could bring a gradual reopening of the Strait of Hormuz.
Brent crude futures fell $1.95, or 1.93%, to $99.32 a barrel by 0912 GMT.
West Texas Intermediate dropped $1.93, or 2.03%, to $93.15.
Thursday's session was volatile, with Brent trading in a range of up 1% to down 3.8% versus the previous close.
Both benchmarks slumped more than 7% on Wednesday, hitting two-week lows on optimism over a possible end to the Middle East war.
Price drops continued into Thursday, as investors reacted to fresh headlines of progress towards potential peace talks.
Analysts flagged a report from Saudi Arabia's Al Arabiya news channel that understandings have been reached to ease the U.S.
blockade in exchange for a gradual reopening of the Strait of Hormuz, and another by Israel's Channel 12 that Iran allegedly agreed to transfer its stockpile of 60% enriched uranium to a third country.
Reuters could not immediately verify the contents of either report.
"From a broader perspective, oil markets have remained stuck between diplomacy and disruption for more than two months, with investors' emotions being manipulated by headlines almost daily," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"If a formal deal eventually materialises, oil prices could witness a free fall as geopolitical premiums rapidly evaporate from the market.
However, any fresh signs of attacks on oil infrastructure or escalation in the Middle East could easily trigger another parabolic spike in crude prices." Iran had said on Wednesday that it was reviewing a U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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