Crude futures found a floor after Tuesday's sharp sell-off, maintaining a dramatic drop triggered by reports that the United States and Iran are pushing for a second round of negotiations soon. Traders are pricing in de-escalation, despite ongoing geopolitical friction.

West Texas Intermediate settled near $91 a barrel, recovering slightly from an earlier plunge of nearly 8% on the news of potential talks. These discussions aim to secure an agreement before the existing ceasefire agreement lapses sometime next week, according to sources familiar with the planning.

However, global energy flows remain constrained as the blockade on the Strait of Hormuz persists, complicating the immediate impact of diplomatic maneuvering on supply chains. One suggested venue for the renewed dialogue is Pakistan, though other locations are reportedly under consideration by both Washington and Tehran.

Markets reacted nervously to the fragility of the situation; any failure to extend the truce or secure a deal could quickly reverse Tuesday’s price correction. The immediate price action reflects cautious optimism regarding potential relief for vital international energy arteries.