Oil prices slide 2% as US-Iran seek path out of war, Saudi supply fears persist
Oil prices dropped by more than 2% amid the initiation of US-Iran truce talks, alongside escalating worries about Saudi oil supply. Brent crude fell to $104.30 a barrel, while West Texas Intermediate decreased to $92.41. With negotiators examining the reopening of the Strait of Hormuz for sanction relief on Iran, the situation remains tense.
Oil prices plummeted by over 2% as markets weighed on hopes of a US-Iran truce and worries over potential Saudi supply disruptions. Brent crude slipped $2.28, or 2.14%, to $104.30 per barrel, while West Texas Intermediate (WTI) declined $2.20, or 2.33%, to $92.41 per barrel. The US and Iranian negotiators in New York discussed a phased path out of the war, which would require Iran to reopen the Strait of Hormuz in exchange for Washington lifting its economic blockade on Iran.
However, Iran remains firm on its nuclear program, showing no flexibility even if the US accepts the proposal to reopen the strait. The Strait of Hormuz remains crucial for oil markets, with crude flows through the waterway reaching 33.7 million barrels in the week starting September 20. The Middle East conflict's seven-month duration keeps oil markets on edge, and US discussions about a potential ban on diesel exports add to the pressure on crude prices.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Crude oil price dips as traders weigh US-Iran Hormuz talks, supply risks thehindubusinessline.com
