Brent Crude Trims Losses

Brent crude held around $100 a barrel on Tuesday, well above a session low of $98.63, as traders continued to monitor diplomatic efforts to end the conflict with Iran. US President Trump told the UN that he believed the US would reach a deal with Iran right after the midterm elections in November. He noted that oil flows have increased since the conflict began, while suggesting prices could fall sharply once the war ends. Speculation about a meeting with Iranian President Masoud Pezeshkian persisted, although Secretary of State Marco Rubio said he was unaware of plans. Japan’s Kyodo News reported earlier that Iran proposed reopening Hormuz within seven days if a US blockade were lifted. Also, Saudi Arabia began preparations to restart its East-West oil pipeline, which was halted after drone attacks earlier this month, with exports potentially resuming later this week.

Brent crude fell to $99 a barrel on Tuesday, extending losses into a fifth session and reaching the lowest level in two weeks, after reports suggested Iran could reopen the Strait of Hormuz if the US lifted its blockade of Iranian ports. Japan’s Kyodo News reported that Tehran had proposed reopening the strategic waterway within seven days of the blockade being lifted, potentially creating a basis for discussions with mediating countries during the UN General Assembly. President Donald Trump is due to address the assembly in New York and may meet Iranian President Masoud Pezeshkian on the sidelines. Meanwhile, Saudi Arabia has continued moving crude through Hormuz at around 2.9 million barrels per day over the past six days. Satellite imagery showed supertankers with combined capacity of about 14 million barrels at Saudi Gulf export terminals, the highest count observed since at least June.

Brent crude rose to around $102 per barrel on Tuesday after falling for four straight sessions, as investors weighed whether renewed diplomatic efforts to end the US-Iran war could make progress and help restore energy flows from the Middle East. President Donald Trump is scheduled to address the UN General Assembly in New York later today and could meet with Iranian President Masoud Pezeshkian on the sidelines. Trump is also expected to hold discussions with other Gulf nations and Chinese President Xi Jinping this week. Meanwhile, the Trump administration has proposed a $5 billion fund to help rebuild infrastructure across the Middle East damaged by the war. Saudi Arabia, meanwhile, moved crude through the Strait of Hormuz at 2.9 million barrels per day over the past six days. Satellite images also showed supertankers with a combined capacity of 14 million barrels at Saudi Arabia’s Gulf export terminals over the weekend, marking the highest tanker count observed since at least June.