Oil pulls back as traders look for progress on US-Iran talks

BEIJING, May ​27 (Reuters) - ⁠Oil prices eased from ​recent highs on Wednesday, erasing some of the previous day's 4% ​gain as ‌traders sought clarity on negotiations between Iran and the U.S. ⁠after renewed hostilities set back ⁠efforts to reopen the Strait ​of Hormuz.

Brent crude futures fell $1.52, or 1.53%, to $98.06 a barrel as of 0633 GMT, while U.S. West Texas Intermediate (WTI) ​crude ‌lost $1.90, or 2.02%, to $91.99 a barrel.

Oil surged on Tuesday after the U.S. military carried out new strikes in Iran, hurting hopes over the weekend ​that the United States and Iran would reach an agreement ‌to end the war.

Iran said on Tuesday the United States had violated ‌a ceasefire by striking targets near the contested Strait of Hormuz, while the U.S. said its strikes were defensive ​in nature.

Israel ramped up bombing inLebanon on Tuesday, further straining peace efforts.

Following ‌an April ceasefire in the three-month-long conflict, both sides indicated they had made progress on talks toward reopening the ⁠Strait, a ⁠key conduit for global oil ‌and gas flows. But rising hostilities now threaten those negotiations.

Nevertheless, news that some ​LNG ​tankers have passed through the strait in ‌recent days lifted expectations that the waterway might reopen soon, which would add to global supply. (Reporting by Colleen Howe; Editing by Sam Holmes, Elaine Hardcastle)