Oil prices drop 5% on hints at Iran reopening shipping through Strait of Hormuz; Brent below $95

Oil prices plunged Wednesday on rekindled hopes for progress in US-Iran talks aimed at ending the war in the Middle East.

Iran state TV reportedly said that a potential deal with US would reopen shipping through the Strait of Hormuz.

Brent North Sea crude, the international benchmark, fell five percent to $94.61 a barrel, while the main US contract, WTI, tumbled 5.9 percent to $88.31 a barrel.