Oil Prices Slide as Saudi Pipeline Flows Rebound and Diplomatic Hopes Rise

Oil prices edged lower on Wednesday as Saudi Arabia began restoring crude flows through a key pipeline to the Red Sea, while hopes of a diplomatic breakthrough in the US-Iran war grew ahead of talks at the United Nations in New York.

The moves came after US President Donald Trump on Tuesday warned that he could 'annihilate' Iran, while also saying his envoys Steve Witkoff and Jared Kushner had held productive discussions with Iranian mediators aimed at ending the war.

Crude oil prices fell 7 cents to $99.18 a barrel for Brent crude futures and declined 35 cents to $90.17 a barrel for West Texas Intermediate futures on Wednesday, according to market data.

'I think there's a lot of momentum for them to make a deal,' Trump said, as expectations of stronger oil supply and the possibility of an end to the nearly seven-month conflict pushed Brent below $100 a barrel at Tuesday's close for the first time since September 8.