Oil Prices Decline Amid Hopes for U.S.-Iran Truce

Oil prices declined on September 25 as hopes for a U.S.-Iran truce offset renewed attacks on Saudi Arabia. According to the EnergyNow Morning Oil Price Report, WTI crude is trading at approximately US$92.93 per barrel, down US$1.68 from Thursday's settlement price of US$94.61.

The Brent-WTI spread has widened to around US$12.60 per barrel, its widest since May, with concerns over a possible U.S. diesel-export ban contributing to the divergence. Reuters reports that roughly one-fifth of global oil and gas shipments have been curtailed since the Iran war began at the end of February.

Saudi forces intercepted six Houthi ballistic missiles targeting Taif and the Yanbu area on Thursday, but diplomatic hopes are outweighing the renewed attacks on Saudi Arabia. U.S. and Iranian negotiators in New York are exploring a phased route toward ending the conflict, which could involve Iran reopening the Strait of Hormuz and Washington lifting its economic blockade.