Oil Prices Slide on De-Escalation Hopes Ahead of Key UN Meeting
Crude oil prices have been steadily falling as hopes for de-escalation in the Middle East conflict grow. The decline was triggered by Saudi Arabia's announcement that it aims to restore about half of its East-West pipeline capacity within days, with full recovery expected in six weeks.
US Energy Secretary Wright confirmed that pipeline flows could resume soon, further easing supply concerns. While oil prices have been capped by de-escalatory headlines, a broader de-escalation after the UN General Assembly is still uncertain.
The meeting at the assembly will see Trump meet with Gulf leaders to discuss next steps in the war with Iran and possibly meet Iranian officials, including President Pezeshkian. A de-escalation would send oil prices lower, while further escalation could trigger another surge, potentially taking WTI oil above $100.