Brent crude prices fall on US-Iran diplomatic expectations

Brent crude oil prices have declined to approximately $105.58 per barrel amid growing expectations of a diplomatic resolution between the United States and Iran regarding the Strait of Hormuz.

During meetings at the 81st UN General Assembly in New York, Iranian President Masoud Pezeshkian stated that Iran does not seek war and is ready to reach an agreement through negotiations. He expressed a desire to move forward with Washington, referencing previous understandings and noting that the decision to end conflict rests with the United States.

However, tensions remain as Iranian National Security High Council Secretary Mohsen Rezaei indicated that Washington has a 4-5 day window to respond to Tehran's conditions for reopening the Strait. The negotiations involve complex issues including maritime blockades and frozen assets. While positive diplomatic signals have reduced the geopolitical risk premium and lowered oil prices, the market remains volatile as traders weigh the possibility of a breakthrough against the risk of continued deadlock.