Brent crude extended its decline on Wednesday and was on track for its longest losing streak since August last year. According to Sina Finance, the drop came as markets expected talks between the United States and Iran.

In afternoon Asian trading on Wednesday, Brent crude fell 0.8% to $98.43 a barrel, marking a sixth straight session of losses. U.S. crude slipped below $90 a barrel, with a cumulative decline of more than 10% over the past five trading days.

Saudi Arabia signaled on Tuesday that it was prepared to restart the East-West pipeline and resume crude exports along the Red Sea coast, adding pressure to oil prices. The decline in oil prices pushed U.S. stocks to record highs this week, while optimism over artificial intelligence helped the Nasdaq 100 set a new record on Tuesday.

Grace Tam, deputy chief investment officer for Asia at BNP Paribas Wealth Management, said the drop in oil prices only slightly lowered market expectations for a Federal Reserve rate hike in October to a 53% probability. She said, "I do not think the market believes oil prices can keep falling while the U.S.-Iran conflict remains unresolved; tensions could easily escalate again."

Global bond markets were steady on Wednesday, with the 10-year U.S. Treasury yield edging up 0.01 percentage point to 4.96%. Energy price gains have intensified inflation concerns and pushed global bond yields higher. This week, Chicago Fed President Austan D. Goolsbee warned that if the current inflation wave proves to be driven by factors more persistent than the oil shock, the Fed will need an "aggressive" and "preemptive" policy response.