Oil prices drop as US signals potential diplomacy with Iran

Oil prices fell for a fourth consecutive session as Brent crude dropped below $100 and West Texas Intermediate (WTI) fell by over 5%. This decline follows indications of potential de-escalation in the Middle East. US President Donald Trump has signaled openness to diplomatic contact with Iranian President Masoud Pezeshkian, potentially during the UN General Assembly. Additionally, the US administration has decided not to proceed with bombings against Houthi rebels at this time.

Despite disruptions to Saudi Arabia’s East-West pipeline, analysts from JPMorgan noted that Middle Eastern oil flows remain resilient, averaging 17.1 million barrels per day over the last ten days. Meanwhile, in financial markets, the Nasdaq reached a new high, driven by artificial intelligence enthusiasm, even as investors remained cautious regarding Middle Eastern geopolitical developments. While a direct meeting between Trump and the Iranian president has not yet occurred, US and Iranian officials reportedly held a productive three-hour meeting in New York.