Oil prices fall after Trump hails ‘good’ talks with Iran

Oil prices dropped on Wednesday after President Donald Trump announced that US and Iranian representatives had engaged in "very good" talks at the United Nations. Both international benchmark Brent crude and US West Texas Intermediate were trading below the $100 mark, which has been frequently crossed since the Middle East war began in February.

Brent crude fell to $99.30 per barrel, while West Texas Intermediate dropped to $89.93 per barrel. Trump declared the three-hour US-Iran meeting "very good" and "very productive," with another meeting scheduled soon. The US leader's remarks came shortly after he delivered a confrontational speech at the UN, stating he was facing a "big decision" on whether to reach a deal with Iran or "annihilate the Islamic Republic and do it quickly."

Tensions remain high, with Iran maintaining the Strait of Hormuz closed and the US enforcing a counter-blockade on Iranian ports. The conflict in Yemen, involving Saudi-backed forces and Iran-backed Houthis, has further strained energy exports from the Red Sea. Analysts noted that the US-Iran meeting could shift the market from pure escalation pricing to a genuine diplomatic process, although a final deal appeared distant.

Saudi Arabia reportedly resumed operations on its East-West Pipeline, a key oil export route that had been closed by drone attacks. The kingdom aims to restart exports later in the week, but Saudi oil giant Aramco told Asian refiners they could begin picking up crude from the Red Sea port of Yanbu soon, while European customers will not receive oil until October.

Asian markets were mixed, with Hong Kong's Hang Seng index falling by one percent, while Shanghai closed down 0.4%. Alibaba, a major player in China's AI industry, announced plans to expand its overseas data centers, targeting markets in Europe and the Middle East. However, the company informed European customers that they would not receive oil in October.

European markets, including South Korea's Kospi and Taiwan's Taiex, posted early gains, with traders watching Washington's upcoming summit with Chinese President Xi Jinping, focusing on trade between the world's two largest economies.