Brent crude prices fell for a third consecutive trading day on Wednesday, dropping 1.7% to approximately $87 per barrel, extending its cumulative weekly decline to about 8%. The primary reason for the oil price drop was the easing of geopolitical tensions, as Iran and Oman began discussions on a "temporary framework" to resume shipping in the Strait of Hormuz. This led to a decline in market expectations for supply disruption premiums. The lower oil prices also further reduced inflation expectations, driving strength in the bond market.