Oil prices retreat as markets welcome US-Iran talks

European stocks dipped slightly higher on Tuesday (Sept 22) amid investor attention on US-Iran tensions that could affect oil prices and risk sentiment. The pan-European Stoxx 600 rose 0.13% to 642.78, marking its biggest single-day gain in over two months the prior day. Most major regional exchanges also ended in the black. President Donald Trump, speaking at the UN General Assembly, advocated for Iran’s full economic isolation, refusing to resume talks.

Yet, he suggested a deal might occur post November’s US midterm elections. The remarks followed his hints at a potential meeting with his Iranian counterpart. The conflict with Iran is widely unpopular in the US, and Trump’s approval rating plummeted to a record low as inflation erodes Americans’ purchasing power. Despite lingering optimism about a diplomatic breakthrough and reports that Iran may reopen the Strait of Hormuz within a week, analysts maintain a cautious outlook on the intricacies of the ongoing war in Iran.