FEATURE | Oil prices drop as Iran reviews US peace proposal

Oil prices were down about three per cent on Wednesday after paring deeper losses earlier in the trading session, as Iran reviewed a US proposal to end the war that has disrupted global energy flows from the Persian Gulf.

Brent futures were down $3.13, or three per cent, to $101.36 a barrel at 13:01 EDT (17:01 GMT), while US West Texas Intermediate crude futures fell $2.28, or 2.5 per cent, to $90.07. Earlier in the session, Brent futures were down by as much as seven per cent.

Iran is still reviewing the US proposal to end the war in the gulf despite its initial negative response, a senior Iranian official told Reuters on Wednesday, indicating that Tehran had so far stopped short of rejecting it outright.