ASX 200 energy shares are falling on Wednesday as the Brent Crude oil price slips more than 6% to under US$100 per barrel.
The S&P/ASX 200 Energy Index (ASX: XEJ) is down 2.5% while the broader S&P/ASX 200 Index (ASX: XJO) is up 1.75%.
Oil and gas prices are easing across the board today after the United States said it was continuing discussions with Iran to end the war.
Israeli media indicated that the US had proposed a one-month ceasefire to facilitate ongoing discussions for a diplomatic resolution.
The New York Times reported that the US had sent Iran a 15-point proposal via Pakistan, which had offered to act as an intermediary.
Trading Economics analysts commented:
These developments outweighed concerns over further Middle East escalation after President Donald Trump ordered the deployment of roughly 2,000 troops to the region, as the administration considered options to loosen Iran's control over the Strait of Hormuz.
The 2,000 troops are from the US Army's 82nd Airborne Division.
Iran continues to deny it has even engaged in negotiations with the US, and the Strait of Hormuz remains effectively shut.
This is disrupting 20% of the world's oil and gas supplies, which has led to rising fuel prices and some shortages.
In Australia, petrol prices are as high as 247.9 cents per litre in Sydney.
Scores of service stations across the nation have run out of either petrol or diesel, or both.
Nine of the top 10 fastest fallers on the ASX 200 today are energy shares.
Let's take a look.
Image source: Getty Images
ASX 200 energy shares slip on Wednesday
The worst-hit ASX 200 energy share today is Karoon Energy Ltd (ASX: KAR), down 6.7% to $1.92.
The market's biggest ASX 200 oil share, Woodside Energy Group Ltd (ASX: WDS), is down 3.5% to $33.50 per share.
The Santos Ltd (ASX: STO) share price is down 2.4% to $7.66.
Ampol Ltd (ASX: ALD) shares are down 2.8% to $32.88.
The Viva Energy Group Ltd (ASX: VEA) share price is down 2.5% to $2.39.
Beach Energy Ltd (ASX: BPT) shares are 5.1% lower at $1.25.
ASX 200 coal shares are also lower today.
The Yancoal Australia Ltd (ASX: YAL) share price is 5.3% lower at $7.86.
The Whitehaven Ltd (ASX: WHC) share price is down 4.6% to $8.89.
The New Hope Corporation Ltd (ASX: NHC) share price is $5.59, down 4.3%.
Why is the rest of the market rising?
The ASX 200 is rising strongly on hopes that the war in Iran will end soon, as well as new inflation data that surprised on the downside.
The Australian Bureau of Statistics reported that the Consumer Price Index (CPI) lifted 3.7% in the 12 months to February.
That's down 0.1% from the 12 months to January.
Markets were expecting 3.8% for February, so the data was a pleasant surprise for investors.
However, inflation remains well outside the Reserve Bank's target range of 2% to 3%, with its ultimate goal being to reach the mid-point.
Housing costs, which incorporate electricity prices, new homes, and rents, rose the most at 7.2% over the 12 months.
Electricity prices alone rose 37% over the period.
