Oil prices moved lower on Wednesday as investors weighed the prospect of a U.S.-Iran agreement that could restore shipping through the Strait of Hormuz, where traffic has remained severely disrupted since the conflict erupted in late February. 

WTI crude oil futures were down 5.4% at 8.36 a.m. EST, while Brent futures were down 4.6% to $94.9 per barrel.

Piper Sandler Warns Supply Risks Remain Elevated

Meanwhile, Wall Street brokerage Piper Sandler doesn't believe that a new deal will be decided soon between the U.S. and Iran, and expects oil prices to remain elevated as the Strait of Hormuz is largely expected to remain closed. 

In a note, the brokerage said it sees little chance of traffic through the Strait of Hormuz returning ...