US-Iran Diplomacy Weighs on Oil Prices as Traders Assess Geopolitical Risk

Oil prices remained steady on Thursday, October 1, 2026, as investors assessed renewed US-Iran diplomatic efforts to end the Middle East conflict. Brent crude futures rose 0.6% to $98.67 a barrel by 0704 GMT, while US West Texas Intermediate crude increased 0.5% to $90.09 a barrel.

Prices remained volatile in the session, with both benchmarks dropping over 1%, but recovering losses. Brent recorded a monthly gain of around 14% in September, its biggest since July, while WTI rose by about 5% on the month.

Sugandha Sachdeva, founder of SS WealthStreet, said oil's near-term bias remains negative as recovering shipments from the Gulf region and resumed Saudi exports through Yanbu ease supply concerns. US crude inventories rose by 922,000 barrels to 427.3 million barrels in the week ended September 25.

Goldman Sachs estimates that Gulf oil exports have recovered to 23.3 million barrels per day over the last week, in line with their 2025 average. OPEC+ countries are likely to keep their oil production targets steady for November when they meet on Sunday.