Oil prices fall to lowest levels in weeks amid Iran war diplomacy hopes
Global oil benchmarks dropped to their lowest point in over a week on Monday as investors anticipated diplomatic progress regarding the US-Israeli war on Iran ahead of this week's United Nations General Assembly.
Brent and WTI contracts decline sharply
Brent crude futures touched their lowest level since September 10, settling at $102.09 a barrel on Monday morning. The US West Texas Intermediate contract also fell significantly, with the October benchmark dropping to $98.33 before expiring on Tuesday. Both benchmarks recorded their steepest declines in more than two weeks as market sentiment shifted.
Diplomatic hopes influence market sentiment
Investors removed a risk premium from prices based on expectations that negotiations might de-escalate the conflict involving Iran and the United States. President Donald Trump indicated openness to meeting Iranian President Masoud Pezeshkian, who is scheduled to attend the UN General Assembly in New York this week. Analysts noted that while diplomatic breakthroughs remain uncertain, the current market movement suggests a potential shift in geopolitical risk assessment.
Regional conflict impacts supply outlook
Shipment recovery from Saudi Arabia remains partial despite ongoing attacks by Yemen's Houthis on facilities in the Red Sea. Fighting continues across the Middle East as Houthi forces target Riyadh and other strategic locations near the coast. China has requested assistance from Iran to manage regional tensions, though specific outcomes of these requests are not yet clear.
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No differences in figures, names or dates across these reports.
- Dawn
- Business Recorder
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