By Ahmad Ghaddar

LONDON (Reuters] – Oil prices plunged 2% as talks to resurrect a nuke deal with Iran reached their last stages. But losses were contained by heightened tensions over Ukraine between Russia and the West.

At 1413 GMT, the price of a barrel was $92.83 per barrel, down 1.98 or 2.1% U.S. West Texas Intermediate oil was at $91.67 down 1.99 or 2.1%

Stephen Brennock, a broker at PVM Oil said that the oil market was locked in a tug-of-war between Iranian sanctions relief as well as Russian tensions.

Ned Price, spokesperson for the State Department, stated Wednesday that the United States was in “the very last stages” of indirect negotiations with Iran. These talks are aimed at saving a 2015 agreement that limited Tehran’s nuclear activities.

France said Wednesday that a decision to save the nuclear agreement was within days. Tehran was free to decide, but Iran urged the West to remain “realistic.”

South Korea announced Wednesday that it was in talks to resume Iranian imports and freeze Iranian funds. South Korea had been one of Tehran’s top buyers of oil in Asia.

The potential disruption of energy supply is causing tensions to continue to support the oil market, despite this.

On Thursday, Russian-backed rebels and Ukrainian troops traded accusations that they had each fired over the ceasefire line for eastern Ukraine. This alarm comes at a moment when Western countries are warning of an imminent Russian invasion.

Moscow’s declaration of partial withdrawal of troops near Ukraine this week was rebuffed by Western governments who warned that Russia was increasing its military presence close to the Ukraine border.