Oil prices deepened their decline after Axios published a report indicating that the United States is nearing an understanding with Iran to end the trade war, with the two sides close to drafting a brief memorandum that could pave the way for a ceasefire.

Prices fell for the second consecutive day after US President Donald Trump stated in a post on TruthSocial that the United States would suspend efforts to escort ships through the Strait of Hormuz to explore the possibility of reaching an agreement with Iran.

Brent crude, the international benchmark, fell toward $103 a barrel after dropping 6.5% on Tuesday, while West Texas Intermediate crude was near $95.

A double blockade is restricting global supplies. Crude prices had surged by about 50% since the conflict began in late February, halting the flow of hundreds of millions of barrels of the region's oil to global markets.

Flows through this vital waterway have been constrained by a double blockade, with Tehran obstructing shipping while the United States prevents vessels from reaching Iranian ports.

Earlier, U.S. Secretary of State Marco Rubio told reporters at the White House that "Operation Epic Fury is over," 66 days after the United States and Israel began bombing Iran, adding, "We have achieved the objectives of that operation."

On Tuesday, Washington sought to downplay the likelihood of a return to active war, with Defense Secretary Pete Hegseth confirming that the ceasefire, which began less than a month ago, was still holding.