Trump's US-Iran Talks Send Oil Prices Plunging Below $100
Oil prices declined below $100 per barrel on Wednesday after US President Donald Trump announced 'very good' talks between US and Iranian representatives at the United Nations. The meeting, which lasted three hours, shifted market sentiment from pure escalation pricing to a genuine diplomatic process, according to Stephen Innes at Quintex Intel.
The development comes nearly seven months after the Middle East war began, with Iran keeping the Strait of Hormuz closed and the US enforcing a counter-blockade of Iranian ports. The conflict has also led to energy exports from Saudi Arabia being squeezed due to clashes between Saudi-backed government forces and the Iran-backed Houthis in Yemen.
Trump's statements on the US-Iran talks came just hours after he delivered a bellicose address to the UN, saying he faced a big decision on whether to make a deal with Iran or annihilate the Islamic Republic quickly. The US leader has pledged that oil prices would drop as soon as the US wins the war.
The dip in oil prices also coincided with Saudi Arabia reportedly restarting operations along its East-West Pipeline, a crucial oil export route shut down by drone attacks. However, Aramco told European refiners they would not be allocated oil in October, while Asian markets were mixed due to various announcements and developments.