Oil prices slide on hopes of diplomacy in Iran war

Dawn reported that oil prices dropped to their weakest level in over a week on Monday, as traders looked for diplomatic progress in the US-Israeli war on Iran ahead of this week's UN meeting. Brent and WTI both hit their lowest levels since September 10. The November Brent contract stood at $102.09 a barrel by 11:55am PKT, a fall of $1.78 or 1.71 per cent.

WTI's October contract, which expires on Tuesday, shed $1.97 or 1.96 per cent to $98.33 a barrel after the benchmark broke below $100, a level seen as psychologically important. A Singapore-based broker suggested some investors may have shifted their positions to November ahead of expiry. Tim Waterer of KCM Trade said part of the risk premium was being drained from crude as traders pinned hopes on a diplomatic breakthrough this week, though he said the outcome remained uncertain.

Iran and the United States exchanged fresh threats on Sunday, yet President Donald Trump said he would welcome a meeting with Iranian President Masoud Pezeshkian, expected in New York this week. Houthi rebels said they struck sensitive targets in Riyadh and an Aramco site at Yanbu, a major outlet for crude exports, using missiles and drones on Saturday. Satellite tracking cited by JPMorgan analysts put Saudi crude flows through the Strait of Hormuz at 2.9 million barrels a day across six recent days, versus 700,000 barrels a day in August.