Crude Prices Dip Amid Diplomatic Efforts, Iran Conflict Tensions Ease

Oil prices have dropped for the fourth consecutive day due to diplomatic efforts to end the war between the United States and Iran.

Traders are monitoring developments in the conflict, as well as indications that shipments continue to pass through the Strait of Hormuz without issue. The U.S. President stated he would be 'likely' open to meeting with Iranian counterpart Masoud Bezhakian on the sidelines of the UN General Assembly this week.

Oil and liquefied natural gas flows through the Strait have reached their highest levels in six months over the past two weeks, according to Admiral Brad Cooper. Shiyu Zhao, a senior oil analyst at Guotai Junan Futures, believes Brent crude is likely to hold around $100 due to supply conditions.

The market has been volatile due to ongoing conflicts between Iran and the U.S., as well as the Russia-Ukraine war, leading to global inflationary pressures with rising energy prices. The Federal Reserve raised interest rates last week in response to these pressures.