Oil prices rose in Asian trading Tuesday, snapping four straight sessions of losses, as traders weighed possible U.S.-Iran talks at the United Nations General Assembly and rising Saudi crude flows through the Strait of Hormuz.
Brent crude for November delivery rose 1.5% to $101.82 a barrel, while October WTI futures gained 1.5% to $97.22 a barrel as of 02:02 ET (06:02 GMT).
Iran diplomacy lifts sentiment
The rebound followed a rough Monday, when Brent settled 3.4% lower and WTI dropped 4.5%, leaving both benchmarks at their lowest closes since Sept. 9. President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected in New York for the General Assembly. Iran has also conveyed conditions for re-engaging in negotiations through mediators, raising hopes that diplomacy could help de-escalate the conflict.
Saudi shipments through Hormuz recover
Supply concerns have eased as well. Saudi Arabia has reportedly increased crude oil shipments through the Strait of Hormuz after disruptions to its East-West pipeline, with flows averaging about 2.9 million barrels per day over the past six days, sharply up from August, according to satellite data cited by Reuters.
Still, the market remains vulnerable to renewed disruptions. Yemen's Iran-aligned Houthis have continued attacks on Saudi targets, while Saudi Arabia has faced constraints on some export routes. Britain has agreed to provide limited military support to Saudi Arabia as Riyadh faces the Houthi attacks.
A $5 billion infrastructure fund and the Trump-Xi meeting
The Trump administration has also proposed investing $5 billion in a new fund to help Middle Eastern countries rebuild energy infrastructure damaged during the Iran war and reduce their dependence on the Strait of Hormuz, the Wall Street Journal reported. Investors are also watching a planned meeting between Trump and Chinese President Xi Jinping later this week, with trade and geopolitical issues on the agenda. China is the world's largest oil importer, making its economic outlook and trade relations a key factor for crude demand.
Source: Commodities & Futures News
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