Oil prices drop below $100 per barrel days after Trump says negotiations with Iran coming to a close

U.S. benchmark oil prices fell below $100 per barrel Wednesday following statements from President Donald Trump expressing optimism in the negotiations with Iran to end the countries' nearly three-month war. 

The West Texas Intermediate price of oil fell from over $104 per barrel on Tuesday to $98.06 Wednesday afternoon. 

Earlier this week, Trump called off military strikes against Iran to give more time for negotiations in response to allies in the Gulf. He said that the administration was in the "final stages" of the talks, CNBC reported. 

Whether that optimism turns out to be accurate remains to be seen. It wouldn't be the first time the president expressed optimism for an end to the conflict, only for tensions to be reignited when Iran failed to meet U.S. demands for ending its nuclear enrichment program. 

Citibank warned on Tuesday that the market is at risk of underestimating the impact of the disruption of oil supplies coming out of the Strait of Hormuz, a vital waterway through which 20% of the globe's energy is exported. For weeks now, Iran has blockaded the strait, and the U.S. has blockaded Iranian ports. 

Analysts with Citibank told CNBC that they expect flows of oil through the strait will persist for some time. Woods MacKenzie estimates oil prices could reach $200 per barrel in a worst-case scenario where the blockades continue through the end of the year.