Stories
Brent Crude Plummets Below $98 Amid US-Iran Diplomatic Hopes, Longest Losing Streak Since Conflict Began
- •Brent crude oil prices fell below $98 a barrel, marking its longest losing streak since the US-Iran conflict began, driven by reports of potential diplomatic breakthroughs.
- •Kyodo News reported Iran's offer to reopen the Strait of Hormuz within seven days if the US eases military pressure, a proposal reportedly conveyed on September 16.
- •Reuters cited an Iranian official confirming Tehran's openness to diplomacy and that a delegation in New York has full authority to revive talks with the US.
- •Despite diplomatic overtures, the Strait of Hormuz remains closed, with Iran's parliament speaker stating conditions must be met and US commitments honored before reopening.
- •Oil markets also saw relief from Saudi Arabia restarting its East-West pipeline and increasing exports through Hormuz, though overall flows through the strait remain below pre-conflict levels.
Key Questions Answered
Crude oil prices fell sharply as reports of a potential diplomatic opening between the US and Iran eased geopolitical risks in the market. Tehran reportedly offered to reopen the strategic Strait of Hormuz within seven days if the US takes initial steps to ease military pressure.
Iran conveyed through mediators that it would be willing to reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade of Iranian ports.
Saudi Arabia restarted its East-West pipeline and prepared to resume crude exports from the Red Sea port of Yanbu, while Saudi Aramco increased exports through the Strait of Hormuz. Meanwhile, preliminary shipping data showed that traffic through the strait remains well below normal, with only two commodity vessels crossing on Monday compared to about 125 daily before the conflict.
