Oil Slumps as US-Iran Talks Yield No Immediate Breakthrough

Oil prices declined as the US and Iran held their most substantial talks in months on the sidelines of the UN General Assembly in New York, mediated by Qatar. Iranian Foreign Minister Abbas Araghchi met with US envoys Steve Witkoff and Jared Kushner for three hours, with Trump describing it as a very good meeting after the administration had earlier said no meeting was planned.

Iran's conditions include an end to the war on all fronts, an end to the US naval blockade and economic measures against it, and the release of frozen assets. Witkoff described the talks as lengthy and indirect, with mediators moving between the two delegations throughout the day.

The decline in oil prices was driven by improving supply, as Saudi Arabia restarts its East-West pipeline and flows through the Strait of Hormuz recover. The US dollar firmed, while gold fell, caught between easing energy-driven inflation concerns and expectations that major central banks will keep interest rates higher for longer.