LIVE | Oil prices plunge below $100 as expectations grow for Middle East peace deal

Oil prices sank sharply on market optimism about a possible deal to end the Middle East conflict, especially the blockade of the Strait of Hormuz.

The barrel of Brent was trading at $98.13 at mid-European session after losing more than 11% of its value in a few hours, while West Texas International fell to $90.80 per barrel, also with a loss in value of more than 11%.

Chinese Foreign Minister Wang Yi said Beijing will play a "bigger role" in ending hostilities in the Middle East during talks Wednesday with his Iranian counterpart, a week before U.S. President Donald Trump meets with Xi Jinping.

China is a key customer of Iranian oil, defying sanctions imposed by the United States, and is directly affected by the blockade of the Strait of Hormuz, bordering Iran.

Although China was already involved in the negotiations, and was key to reaching the temporary ceasefire, it will now "work harder to ease tensions and end the fighting, continue to support the start of peace talks and play a greater role in restoring peace and tranquility to the Middle East," Wang told Iran's Abbas Araghchi in Beijing.

"China believes that a complete cessation of fighting must be achieved without delay, that it is even more unacceptable to restart hostilities, and that further negotiations remain essential," Wang said, according to a statement from his ministry after the talks.

Pakistani Prime Minister Shehbaz Sharif, a mediator in the conflict between Iran, the United States and Israel, said Wednesday he had "good hopes" that the current dynamics in the Strait of Hormuz will lead to peace in the Middle East.

"We have good hopes that the current dynamics will lead to a lasting agreement that will ensure sustainable peace and stability for the region and beyond," he said in a message posted on X.

The United Arab Emirates denounced being attacked for the second time with drones and missiles from Iran. The authorities denounce that the target of these aggressions are the Emirati pipelines, which have increased the amount of black gold flowing through them to make the blockade of the Strait of Hormuz lighter.

Something the Iranian military command denied "categorically": "The armed forces of the Islamic Republic of Iran have not carried out any missile or drone operations against the United Arab Emirates in recent days," said the spokesman for the armed forces command headquarters, Khatam Al Anbiya, quoted by state television.

The Maltese-flagged San Antonio container ship, owned by French shipowner CMA CGM, was "targeted" Tuesday in the Strait of Hormuz, the group confirmed.

The attack caused "injuries among the crew members," who were "evacuated and attended to," and caused "damage" to the vessel, CMA CGM added.

The Israeli Army called for the evacuation of 12 villages in southern Lebanon, ahead of likely attacks which it claims target the pro-Iranian terrorist group Hezbollah.

"For your safety, you should evacuate your homes immediately and move away (...) at least 1,000 meters to clear areas," Avichai Adraee, the Israeli army's Arabic-language spokesman, wrote on his X account.