Oil Falls Below $100 as Trump Hails ‘Very Good’ Iran Talks
SINGAPORE — WEB DESK: Global oil prices extended their decline on Wednesday, falling below the psychologically important $100-a-barrel level as markets reacted to signs of progress in US-Iran diplomacy and an improving outlook for Gulf oil supplies.
Brent crude futures fell 78 cents, or 0.79%, to $98.47 a barrel by 0651 GMT, while US West Texas Intermediate dropped $1.21, or 1.34%, to $89.31 a barrel, according to Reuters.
Earlier Asian trading cited by Express Urdu put Brent at $98.91 and WTI at $89.93 a barrel, illustrating how prices continued moving during the session.
The decline came after US President Donald Trump said American and Iranian representatives had held “very good” talks on the sidelines of the United Nations General Assembly in New York. Trump said the approximately three-hour meeting was also “very productive” and indicated that another meeting could take place soon.
Trump separately said talks between Washington and Tehran were continuing and expressed confidence that a settlement could eventually be reached. However, he reiterated that the United States would not accept Iran acquiring nuclear weapons.
The diplomatic signals have encouraged traders to price in the possibility of reduced geopolitical risk after months of conflict and disruption to Middle Eastern energy flows.
Iran has separately indicated a willingness to reopen the Strait of Hormuz within a week if Washington eases military pressure and lifts its blockade of Iranian ports, according to a senior Iranian official cited by Reuters. Iran’s delegation in New York has been authorised to pursue negotiations.
Hormuz remains critical to global energy markets because of the large volume of crude oil and liquefied natural gas transported through the waterway. Any sustained improvement in shipping conditions could therefore reduce the geopolitical risk premium embedded in crude prices.
Oil was also pressured by developments in Saudi Arabia. Reuters reported that Saudi Arabia had restarted operations at its strategically important East-West Pipeline, improving expectations for Gulf supply after recent disruption.
The pipeline allows Saudi crude to travel from eastern oilfields to the Red Sea coast, providing an export route that can bypass the Strait of Hormuz. Its return has consequently eased some concerns about the availability of Middle Eastern supplies.
The latest move extends a sharp reversal in crude markets. On Monday, Brent settled at $100.34 a barrel after falling 3.4%, while WTI’s expiring October contract dropped 4.51% to $95.78 as traders responded to hopes for diplomacy and recovering Saudi shipments.
Despite the decline, considerable uncertainty remains. Negotiations have not yet produced a final US-Iran peace agreement, the security situation across the Middle East remains volatile, and disruption to major oil infrastructure or shipping routes could quickly reverse market sentiment.
For now, however, a combination of US-Iran diplomatic engagement and improving Saudi supply prospects is reducing immediate fears of severe oil shortages and pushing benchmark crude prices lower.
