Iran-US Talks Send Oil Prices Plummeting
Oil prices plummeted Wednesday amid optimism that supply disruptions would ease following US-Iran talks at the UN meeting. The discussions between the two nations lasted about three hours, with President Donald Trump describing them as 'very good'.
The Strait of Hormuz, a critical waterway for global oil shipments, has been blocked by Iran in response to tightened US sanctions. However, Reuters reported that Iran could reopen the strait within a week if the US agrees to ease military pressure and lift its blockade of Iranian ports.
Paolo Broccardo, CEO of private digital bank BankPro, stated that oil prices are unlikely to see a huge jump for now. He noted that over the past five consecutive sessions, the price has fallen by almost 12%, retreating from the 'intervention zone' above $100 where intensified peace-building efforts have been seen.
Futures for international benchmark Brent crude for November delivery dropped 0.89% to $98.37 a barrel, while US West Texas Intermediate futures for November fell 1.5% to $89.16 per barrel.