WTI crude futures fell about 4% to below $89 per barrel on Wednesday, erasing the prior session’s gains amid reports that Washington was intensifying diplomatic efforts to end the war with Iran. Israeli media reported that the US was seeking a one-month ceasefire to enable negotiations, while the New York Times said Washington had sent Tehran a 15-point proposal aimed at resolving the conflict. These developments outweighed fears of a further escalation in the Middle East after President Donald Trump ordered the deployment of roughly 2,000 additional troops to the region, as his administration weighed options to weaken Iran’s control over the Strait of Hormuz. On Tuesday, oil prices had climbed about 5% after Tehran denied holding talks with the US and signaled no intention of restoring normal shipping conditions in the Strait, while US allies including Saudi Arabia and the United Arab Emirates indicated they were prepared to join the conflict against Iran.