Oil Prices Extend Losses as U.S.-Iran Talks Ease Supply Fears

Oil prices extended their decline for a sixth consecutive session on Wednesday as signs of diplomatic progress between the United States and Iran eased concerns over Middle East supply disruptions. Saudi Arabia’s efforts to restore a major crude export route also weighed on prices.

Brent crude futures for November delivery fell 0.8% to $98.45 per barrel as of 20:21 ET (00:21 GMT), while West Texas Intermediate (WTI) crude futures dropped 1.1% to $89.55 per barrel.

Both benchmarks lost more than 1% in the previous session. Brent also settled below $100 a barrel on Tuesday for the first time since September 8, reflecting fading geopolitical risk premiums in the oil market.

U.S. President Donald Trump said Tuesday that American officials held a “very good” and productive three-hour meeting with Iranian representatives in New York. The talks raised expectations that negotiations could eventually help reduce regional tensions and disruptions around the Strait of Hormuz.

Trump said special envoys Steve Witkoff and Jared Kushner participated in the discussions, marking the first known direct contact between U.S. and Iranian officials since June.

Iran has reportedly indicated that it could reopen the Strait of Hormuz if Washington reduces military pressure and ends its blockade of Iranian ports. However, Tehran has not confirmed that a formal agreement has been reached.

The Strait of Hormuz remains critical to global energy markets, having handled roughly one-fifth of worldwide oil and liquefied natural gas supplies before the conflict. Recent tanker activity suggests crude flows are increasing, though shipping risks remain elevated.

Adding pressure to oil prices, Saudi Arabia has restarted operations on its East-West pipeline, which transports crude to the Red Sea port of Yanbu and allows exports to bypass the Strait of Hormuz.

The pipeline, which was shut following a drone attack earlier this month, can transport around 7 million barrels per day. Repairs to damaged pumping stations are continuing, and reports indicate that restoring the route to full capacity could take six to eight weeks.