Oil Prices Slide as Saudi Flows Recover Amid Ongoing US-Iran Tensions
Oil prices settled lower on Tuesday as Saudi crude flows picked up and diplomatic contacts between the United States and Iran intensified.
The Saudi East-West pipeline, which had been shut since September 13 after drone attacks, was restarted, and exports from Yanbu were expected to resume. As a result, Saudi flows through the Strait of Hormuz increased to around 2.9 million barrels a day, up from about 700,000 in August.
The diplomatic efforts between the US and Iran remained uncertain, with Iranian officials stating that they could reopen the Strait of Hormuz within seven days if the US eased military pressure and lifted its blockade. However, this report was later disputed by Iranian media.
US President Donald Trump said that his administration had held a productive meeting with an Iranian delegation but that a peace deal would come after the US midterm elections in early November.