US-Iran Diplomacy Boosts Oil Prices to 11-Day Low
Oil prices declined to an 11-day low on Monday as investors became optimistic about diplomatic progress between the US and Iran, which is expected at this week's UN meeting. The Brent crude futures for November dropped $2.69, or 2.6%, to $101.18 a barrel, while the WTI October contract fell $2.69, or 2.7%, to $97.61 a barrel.
The partial recovery in Saudi oil shipments also contributed to the decline in prices. According to satellite data, Saudi oil moving through the Strait of Hormuz averaged 2.9 million barrels per day over the past six days, up from just 700,000 bpd in August.
The Iran-US tensions have been a major concern for investors, but there are signs that diplomacy may be on the rise. President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian at the UN General Assembly this week.