Oil Prices Rise as Iran Signals Potential Strait Reopening
Oil prices rose slightly ahead of potential US-Iran talks as Iran signaled it could reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports. The Brent crude futures November contract was down $2.11, or 2.1%, at $98.23 a barrel, while the WTI October contract lost $2.48, or 2.59%, to $93.30 a barrel.
A senior Iranian official told Reuters that the Iranian delegation to the United Nations General Assembly in New York has full authority to revive diplomacy with the United States. Hamad Hussain, senior climate and commodities economist at Capital Economics, said the Iranian comments were a sign that diplomacy efforts could be working.
Saudi Arabia has restarted operations at its East-West Pipeline and could resume exports from Yanbu port later on September 22, three sources briefed on the matter said. Market focus is also on US President Donald Trump’s meetings with world leaders at the UN General Assembly this week.