Oil Prices Fall Amid Hopes of US-Iran Diplomatic Breakthrough

Oil prices declined on September 24 as Iran signaled its openness to diplomacy to end the US-Iran war, despite significant differences between the two countries on how to achieve a resolution.

Brent crude futures fell by $0.92, or 0.9%, to $102.16 per barrel, while West Texas Intermediate (WTI) futures eased by $0.77, or 0.8%, to $91.39.

Iran's senior official stated that Tehran is reviewing Washington's response to its peace proposals, which prioritize the lifting of a US naval blockade on Iranian ports and the reopening of the Strait of Hormuz.

Priyanka Sachdeva, head of market insights at Phillip Nova, attributed the decline in oil prices to the unwinding of geopolitical risk premiums as Gulf supply recovers and hopes for a diplomatic breakthrough between the US and Iran grow.