Oil Prices Stabilize Amid Trump's Iran Threats

Oil prices stabilized after US President Trump's remarks at the UN General Assembly, where he hinted at potential military action against Iran.

In his address to the annual gathering, Trump threatened that the US might 'annihilate' the Islamic Republic if a deal couldn't be made. He posed a hypothetical question about whether the US would make a deal with Iran or take more drastic measures.

The threat led to a brief dip in oil prices earlier in the day, but they rebounded and remained below $100 a barrel. Brent crude, the international standard, edged up less than 0.1% to $99.30 per barrel after falling from its earlier high.

Diplomatic progress between the US and Iran helped fuel the fall in oil prices on Wednesday, according to ING commodities strategists Ewa Manthey and Warren Patterson. They noted that oil prices also eased due to optimism over reports that Saudi Arabia was restarting operations at a key oil pipeline.