Iran Diplomacy Cools Oil Prices, but Weekly Gains Expected
Oil prices fell on September 11 due to diplomatic efforts to secure a temporary shipping agreement with Iran, but remained on track for a weekly gain of more than 8%, according to Reuters. Brent crude futures dropped by 2.81% to $104.61 per barrel, while US West Texas Intermediate (WTI) crude futures fell by 2.37% to $100.05 per barrel.
The Financial Times reported that Middle Eastern foreign ministers were attempting to negotiate a deal with Iran to manage shipping through the Strait of Hormuz, which had a significant impact on oil-market sentiment.
Some analysts expressed caution about the market's response to the news, citing ongoing supply disruptions and high price volatility. Commerzbank raised its year-end Brent crude forecast to $85 per barrel from $75, while US diesel prices rose above $6 per gallon for the first time on September 10.