Oil Prices Steady as US-Iran Diplomacy Takes Center Stage
Oil prices have stabilized as investors weigh in on renewed US-Iran diplomatic efforts to end the Middle East conflict. On Thursday, October 1, 2026, Brent crude futures rose by 0.6% to $98.67 a barrel, while US West Texas Intermediate crude increased by 0.5% to $90.09 a barrel.
The oil prices remained volatile in the session, with both benchmarks dropping over 1%, but recovering their losses. Brent recorded its biggest monthly gain since July, increasing by around 14% in September, while WTI rose about 5% on the month.
Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm, said oil's near-term bias remains negative due to recovering shipments from the Gulf region and resumed Saudi exports through Yanbu. The buildup in US inventories also eased supply concerns, as US crude stocks rose by 922,000 barrels to 427.3 million barrels in the week ended September 25.
Renewed diplomatic engagement between the US and Iran could further reduce the geopolitical risk premium, although a breakthrough remains uncertain, according to Sachdeva. Goldman Sachs estimates Gulf oil exports have recovered to 23.3 million barrels per day over the last week, in line with their 2025 average.