Oil prices slip below $100 as Iran talks advance

Oil prices dipped below the $100 per barrel threshold on Wednesday as talks between the United States and Iran showed progress in easing tensions around the Strait of Hormuz, a vital route for global oil shipping. On Wednesday, Brent crude was trading at approximately $98.18 per barrel, while US West Texas Intermediate stood at around $90.64, according to market data.

The drop came after Iran indicated it had received a response from the US to its latest proposal to revive a collapsed ceasefire and reduce conflict between the two nations. According to Reuters, Iranian Foreign Minister Abbas Araqchi received the US response through Qatari mediators following talks between the two sides last week during the UN General Assembly in New York.

Iran's proposal outlines a seven-day plan where the US would lift its blockade of Iranian ports, while Iran would reopen the Strait of Hormuz and resume normal maritime passage. However, the two sides remain divided over the sequence of their proposed steps, so no agreement has been reached to open the strategic waterway. The Strait of Hormuz is one of the most critical oil shipping routes globally, and the ongoing conflict has significantly disrupted the flow of crude oil, refined products, and natural gas.

Shipping through the strait has increased in recent weeks, but vessels have been paying high fees to navigate it due to security risks. With oil prices highly sensitive to developments in the conflict, Brent had surged above $100 per barrel earlier in September due to heightened fears of supply disruptions from shipping attacks and energy infrastructure threats.

The recent price drop below $100 indicates changing expectations about supply disruptions rather than a sudden drop in global oil demand. Analysts have also raised their 2026 oil-price forecasts due to ongoing disruptions in Gulf exports, especially through the Strait of Hormuz, which continues to offset concerns about demand growth.

Additionally, Qatar is mediating between Washington and Tehran, expressing hope that their shuttle diplomacy can lead to an agreement and prevent further repercussions from the conflict.