Oil Prices Plunge as Gulf Supply Worries Ease Amid Iran Diplomacy

Oil prices dropped on September 22 as concerns over Gulf supply eased. Brent crude declined by 1.39% to $98.68 a barrel, while US West Texas Intermediate (WTI) crude fell by 2.05% to $90.20 a barrel.

The decline in oil prices is partly attributed to reports that Iran may be willing to reopen the Strait of Hormuz within seven days, according to Hamad Hussain, senior climate and commodities economist at Capital Economics.

Saudi Arabia has also restarted operations at its East-West Pipeline and could resume exports from the Red Sea port of Yanbu later today. The pipeline was disrupted on September 10 following drone airstrikes that led to its shutdown, rising oil prices, and delaying exports to some international countries.