Crude oil's slide stalled after Iran reportedly offered to reopen the Strait of Hormuz within seven days in exchange for a US pullback, while Saudi Arabia prepared to resume Red Sea exports. President Trump then said a deal with Iran would wait until after the November elections, tempering hopes of a quick end to the conflict.
Iran's Hormuz offer and Saudi exports pressure prices
Oil dropped further after a Kyodo report said Iran offered to reopen the Strait of Hormuz within seven days if the US lifted its blockade of Iranian ports and halted military operations around the strait, a proposal reportedly conveyed to Washington through intermediaries around the UN General Assembly. Reuters later confirmed the report.
Prices extended losses after Saudi Arabia was said to be ready to resume crude exports from the Red Sea port of Yanbu, with several Asian refiners reportedly told by Saudi Aramco they will soon be able to collect crude from the port again.
Talks confirmed as Trump pushes back the timeline
Fars News initially denied the Hormuz reports, but IRIB news later confirmed them after US Special Envoy Witkoff met the Iranian delegation in New York. The talks were described as constructive and promising, and Trump said another meeting was scheduled for the near future.
However, Trump poured cold water on expectations of an earlier end to the conflict after repeating that the US would make a deal with Iran after the November elections. If the current talks fail again and the conflict re-escalates, WTI could surge back above $100 and weigh on broader risk sentiment.
Technical picture points to further downside
On the daily chart, WTI broke below the 93.00 support zone and extended losses below the 90.00 level, with sellers eyeing the lower channel bound near 85.00 and the 68.00 support beyond that. On the 4-hour chart, a downward trendline still defines the bearish momentum, while buyers would need a break above 105.00 to shift the picture. On the 1-hour chart, price consolidates near the lows, with 90.40 marking resistance and 88.70 the level sellers need to break for a deeper drop.
Today's Flash US PMIs and tomorrow's Trump-Xi meeting are the next catalysts traders are watching, alongside any further movement in the US-Iran talks.
Source: Investinglive (Investinglive RSS Breaking News Feed)
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