Oil prices fell sharply in early asian trade on Wednesday, with both major benchmarks dropping more than 5% as traders reacted to signs of potential de-escalation in the Middle East conflict as well as a crude inventory build in the U.S.

At the time of writing, WTI crude was trading at $87.51, down 5.24%, while Brent crude had fallen below the psychologically important $100 to $98.03, down 6.08%.

The selloff follows a volatile 48 hours in oil markets, where prices had surged following President Trump’s threat to blow up Iranian power plants and then dropped when he claimed the countries were moving toward an agreement.

New reports suggest that the U.S. has sent a potential peace framework to Iran, sparking hopes of a temporary ceasefire. Iran has added to the downward pressure on prices by circulating a letter to the International Maritime Organization stating that “non-hostile vessels” could transit the Strait of Hormuz in coordination with Iranian authorities.

President Trump said negotiations were progressing and that Iran was “talking sense,” while reports suggested a 15-point settlement proposal could pave the way for a one-month ceasefire. Iran, however, has publicly denied that direct talks are taking place.