Oil prices decline to week lows as markets anticipate diplomatic progress on Iran tensions during UN General Assembly meeting.
Crude futures dropped to their lowest levels in over a week Monday as investors bet on diplomatic progress during this week’s UN General Assembly, though Middle East tensions remain high from Houthi attacks on Saudi infrastructure. Brent crude fell 1.71 percent to $102.09 a barrel, while US West Texas Intermediate slid 1.96 percent to $98.33.
- ▪Brent November contract down $1.78 to $102.09/barrel; WTI October contract fell $1.97 to $98.33/barrel on Monday
- ▪Both benchmarks touched their lowest since September 10 as investors removed risk premium on hopes for US-Iran diplomacy
- ▪President Trump signaled openness to meeting Iranian President Masoud Pezeshkian, expected in New York for UN General Assembly this week
- ▪Iran conveyed conditions to mediators for negotiations aimed at ending the war with the US, according to Iran’s security chief
- ▪Revolutionary Guards spokesman warned Iran would deploy new weapons and target untouched locations if US launches new offensive
- ▪Yemen’s Houthi rebels attacked Saudi Aramco oil facilities in Riyadh and Red Sea port of Yanbu with missiles and drones
- ▪Saudi Arabia shifted oil exports to Strait of Hormuz route after Houthi attacks on East-West pipeline; flows averaged 2.9 million bpd over six days
- ▪China asked Iran to help restrain Houthi attacks after Saudi Arabia appealed to Beijing following weekend strikes
- ▪Middle East oil flows remain robust at 17.1 million bpd despite disruptions, only 6.1 million bpd below 2025 average
Source: according to media reports
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