Oil dives below $100 as Saudi supply recovers and Iran diplomacy sparks hope

Oil prices dropped below $100 per barrel on Monday as markets anticipated a possible diplomatic opening between the United States and Iran, coupled with signs that Saudi Arabia was restoring crude shipments. The prices fell as investors sought reassurance that the U.S.-Iran conflict might be moving toward negotiations during the United Nations General Assembly in New York.

The latest figures showed WTI crude at $95.29 a barrel, down 5.00% from the previous session, and Brent crude at $99.96 a barrel, down 3.76%. The Bloomberg Terminal reported that Murban crude was $111.20 a barrel, down 5.70%, while the natural gas price dipped 2.20% to $2.848 per million British thermal units. Despite the decline, prices remained above $100 due to ongoing concerns about the Strait of Hormuz.

Saudi Arabia's East-West pipeline, damaged by drone attacks, was partially restored, allowing increased exports through ship-to-ship transfers near Oman. However, the Strait of Hormuz remains a central risk for oil markets, with only 17 vessels transiting the waterway during the weekend, down from 37 the previous weekend.