Middle East Tensions Stalemate Oil Prices Amid Hopes for Diplomatic Breakthrough
Brent crude oil prices are stuck in a stalemate amidst escalating tensions in the Middle East and hopes for de-escalation through diplomatic efforts.
The front-month ICE Brent contract lost $0.81 per barrel on the day from Friday, trading at $101.90 per barrel at 09:00 GMT.
Supply-related risks continue to put upward pressure on prices, with US President Donald Trump warning Iran that it risks being 'wiped out' entirely if it doesn't comply with Washington's demands.
In response, Iranian military officials said further attacks will trigger retaliation against US bases in the region and that allies of the US will be considered parties to the conflict.
However, traders are betting on a breakthrough from high-stakes diplomacy at this week's UN General Assembly (UNGA) summit, where Iranian President Masoud Pezeshkian is expected to attend.
The upcoming Trump-Xi meeting in Washington on September 24 has also lifted market confidence as it could stabilize trade corridors currently in fragile conditions.