Oil prices fell on Wednesday following three consecutive sessions of increases, as investors awaited the outcome of a high-stakes summit in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping.
The price movements occur against the backdrop of the war in Iran, which shows no signs of a near-term resolution. President Trump has stated that the American ceasefire with Iran is on life support, a comment that drove prices higher on Tuesday amid concerns over a prolonged Middle East conflict.
As the conflict drags on, the vital Strait of Hormuz remains effectively closed, and shipments from Iran's main export terminal appear to have come to a standstill. Investors are maintaining a cautious approach as the lack of progress in peace talks continues to weigh on the markets.