Oil prices slide on hopes of diplomacy in Iran war

Oil prices dropped to their lowest levels in over a week on Monday as investors anticipated potential diplomatic progress in the US-Israeli war on Iran following this week's UN meeting. Brent crude futures and US West Texas Intermediate (WTI) crude reached their lowest point since September 10 earlier that day. The Brent contract for November fell to $102.09 a barrel, down $1.78, or 1.71%, while the WTI October contract, expiring on Tuesday, decreased by $1.97, or 1.96%, to $98.33 a barrel.

Analyst Tim Waterer noted that a portion of the risk premium was being removed from oil prices due to hopes of a diplomatic resolution to the US-Iran conflict. Iran and the US exchanged new threats on Sunday, but President Trump indicated openness to meeting with Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly.

Iran has presented its conditions to mediators for re-engaging in negotiations aimed at ending the war with the US. However, tensions in the Middle East remained high, as Yemen's Houthis attacked Saudi Arabian targets, including Riyadh and Aramco facilities. In response, Saudi Arabia increased oil exports through the Strait of Hormuz, despite the disruption caused by the attacks.