Oil Prices Slide Amid Hopes of US-Iran Diplomacy
Oil prices dropped to their lowest in over a week on Monday, September 21, as hopes of diplomacy in the US-Iran conflict rose following a United Nations meeting. Brent crude futures and US West Texas Intermediate crude touched their lowest since September 10, with Brent at $101.71 a barrel by 0213 GMT, down $2.16 or 2.08% from Friday's close.
According to Tim Waterer, chief market analyst at KCM Trade, 'a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week.' However, he cautioned that whether this hope materializes remains uncertain.
The conflict between Iran and the US escalated over the weekend, with both sides exchanging new threats. President Donald Trump expressed willingness to meet Iranian President Masoud Pezeshkian, who is expected in New York for the United Nations General Assembly this week.
In a separate development, Yemen's Iran-backed Houthis claimed responsibility for attacks on 'sensitive' sites in Riyadh and an Aramco facility in Yanbu, a key oil export hub.