Oil hits over 1-week low on hopes of boost to diplomacy in Iran war

Business Recorder reported that oil prices fell to their weakest level in over a week on Monday, as traders weighed the prospect of renewed diplomacy to end the Iran war. Brent crude was trading at $101.71 a barrel early in the session, down $2.16 or 2.08%, while US West Texas Intermediate dropped $2.15 to $98.15 a barrel. Both benchmarks touched levels last seen on September 10 earlier in the day.

Hopes rose that a United Nations meeting this week could open space for talks, even as Iran and the US traded fresh threats on Sunday. Iran has sent mediators the terms it wants met before returning to talks, Al Jazeera reported, citing security chief Mohsen Rezaei. Trump, meanwhile, signalled willingness to sit down with Iranian President Masoud Pezeshkian, who is set to attend the General Assembly in New York this week.

KCM Trade analyst Tim Waterer said some risk premium was leaving crude, while cautioning that the hopes may not prove justified. Tensions stayed high, however, after Yemen's Houthis said on Saturday they struck sensitive sites in Riyadh and an Aramco facility in Yanbu, a major oil export hub. Saudi exports have climbed back above 4 million barrels per day this month, compared with 2.4 million in August, according to provisional Kpler data. Aramco has shifted part of its exports toward the Strait of Hormuz after pausing some Yanbu shipments.