Oil prices fell to their lowest level in 11 days on Monday as investors looked for signs of diplomatic progress in the Iran conflict.
Brent crude and US West Texas Intermediate both dropped to levels last seen on 10 September, moving closer to the $100-a-barrel mark.
Markets are watching this week’s United Nations General Assembly closely, with hopes that diplomatic engagement could ease tensions and reduce concerns about further disruptions to oil supplies.
The latest decline comes despite renewed threats between Iran and the United States over the weekend. US President Donald Trump has also indicated that he would be open to meeting his Iranian counterpart, who is expected to attend the UN gathering.
Iran has reportedly communicated conditions to mediators for a possible return to negotiations, although fighting across the region has continued.
Yemen’s Iran-backed Houthi movement has claimed attacks targeting Saudi Arabia, including an Aramco facility in Yanbu. The attacks have added to concerns about energy infrastructure and regional shipping routes.
Saudi Arabia has been adjusting its oil export routes after disruptions affecting shipments through Yanbu, with more crude potentially being moved through the Strait of Hormuz.
China has also called on Iran to help address the Houthi attacks as regional tensions continue to put pressure on energy markets.
For investors, the key question remains whether diplomatic efforts can slow the conflict enough to reduce the risk of further disruption to global oil supplies.
Main Image: Daily Trust
