Oil prices tumble to 2-week low on hopes for critical pipeline reopening and Iran diplomacy
Oil prices fell sharply fell for a fifth straight trading session, reaching a two-week low on hopes of a renewed diplomatic push to end the Iran war and optimism over the reopening of a critical pipeline in Saudi Arabia.Brent crude oil briefly slipped below $98 per barrel while U.S.crude oil fell below $93 per barrel, their lowest prices since Sept.
8.Prices first began sliding overnight on reports that Iran was offering to reopen the Strait of Hormuz within days if the U.S.takes steps toward easing pressure on the country.
NBC News has not confirmed the reports.Iran’s semiofficial Fars news agency said that “Iranian sources have described these reports as unreliable and untrue,” without naming those sources.It was the latest hint that there may be a window for Washington and Tehran to re-engage in their standoff over the Strait of Hormuz — a possibility that would be welcome relief for markets eager for the restoration of energy supplies from the Middle East.President Donald Trump is holding a number of meetings with world leaders Tuesday at the United National General Assembly in New York City.
Trump signaled a willingness to meet with Iranian President Masoud Pezeshkian, which had already soothed some market concerns.Asked about a potential meeting between the two leaders, Secretary of State Marco Rubio told NBC News, “I don’t think anything is scheduled at this point.” Rubio added that the U.S.
was “open to something like that,” though.Since the U.S.and Israel launched the Iran war Feb.
28, vessel traffic through the Strait of Hormuz has at times ground to a near halt.Over the course of the last week, daily traffic did not exceed 20 ships in a day, according to data from MarineTraffic.
Also fueling oil’s downward move Tuesday were reports about Saudi Arabia’s key east-west pipeline, which has effectively acted as a Strait of Hormuz workaround for oil exports.On Sept.11, the Saudi Energy Ministry said that the pipeline was shut after ...