- Oil prices slipped on reports of US-Iran talks about reopening the Strait of Hormuz
- Brent crude fell toward $106 per barrel after a 7% rise in the prior two sessions
- Talks occurred alongside the UN General Assembly amid ongoing US-Iran conflict
Oil prices slipped after reports that the US and Iran were exploring a phased agreement that could see Tehran reopen the Strait of Hormuz, offering markets a potential route out of one of the biggest supply disruptions of the conflict. Brent crude fell toward $106 a barrel after rising more than 7% over the previous two sessions, while West Texas Intermediate was below $94. The reported discussions were taking place on the sidelines of the United Nations General Assembly, according to a person familiar with the talks.
The talks come as oil markets remain highly volatile with the US-Iran conflict approaching its seventh month. Prices have swung on changing expectations around the war, signs of improving Middle East oil flows and speculation that Washington could restrict diesel exports.
For the year, Brent remains more than 70% higher, adding to inflationary pressure.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The Strait of Hormuz remains at the heart of the supply risk. Iran has maintained that it has sovereign control over the waterway, while the US has said its status should not be altered. Washington has also imposed a blockade on Iranian ports.
The White House said President Donald Trump remained open to discussions with Iran, while stressing that the US did not need to negotiate from a position of weakness.
Traders reportedly paid record premiums for prompt barrels at Cushing, Oklahoma, the main US storage hub, highlighting the scramble for immediately available crude. In Europe, Dated Brent has been trading at a wide premium to futures, another indication of tightness in physical supply.
At the same time, the conflict is continuing to generate fresh risks. Saudi Arabia intercepted missiles headed toward Yanbu and Taif, while Iran-backed Houthi militants launched further strikes against the kingdom. France's President Emmanuel Macron said France would deploy troops to help secure a Saudi energy facility.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
