WTI Crude Falls 1.85% to $90.52 as Diplomatic Efforts Gain Momentum

Crude oil prices declined on hopes for US-Iran diplomacy and signs of increasing supply. A senior Iranian official said Tehran welcomes a revival of diplomacy if the US takes steps, while reports suggested Iran could reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts the blockade.

The decline was exacerbated by reports that Saudi Arabia has restarted the East-West oil pipeline and is preparing to resume crude exports from Yanbu. WTI and Brent hit lows of $89.16 and $93.71 per barrel, respectively, before gradually paring losses.

However, Iranian press pushed back on earlier source reports regarding the reopening of the Strait in exchange for easing US military pressure and lifting the blockade. Al Jazeera reported that Iran would only consider engaging in talks with the US if Washington fulfils commitments pertaining to its conditions and provides guarantees.