TLDR
- Oil prices fell to their lowest levels since September 10 as investors watched for diplomatic progress in the U.S.-Iran conflict.
- Brent crude dropped about 1.7% to $102.09 a barrel, while WTI fell nearly 2% to $98.33.
- President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian at the UN General Assembly.
- Middle East tensions remain high after Houthi missile and drone attacks on Saudi targets.
- Saudi oil shipments through the Strait of Hormuz have increased sharply despite damage to the kingdom’s East-West pipeline.
Oil prices fell to their lowest levels in more than a week on Monday as traders focused on possible diplomatic progress in the U.S.-Iran conflict.
Brent crude for November fell about 1.7% to $102.09 a barrel in early trading.
West Texas Intermediate crude dropped almost 2% to $98.33 a barrel, moving below the closely watched $100 level.
The decline extended losses from Friday as some of the geopolitical risk premium built into crude prices began to ease.
Trump-Iran Meeting Hopes Pressure Oil Prices
Investors are watching this week’s United Nations General Assembly in New York for signs of possible talks between Washington and Tehran.
BREAKING: The Trump administration sent new private messages to Qatar, containing assurances that Trump now wants to reach a deal with Iran, per Qatar's foreign ministry.
This comes after Iran conveyed its conditions to the US through Qatar and is now awaiting a response.
Trump…
— The Hormuz Letter (@HormuzLetter) September 20, 2026
President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian during the gathering.
Iran has also communicated conditions through mediators for returning to negotiations, according to reporting cited by Reuters.
KCM Trade chief market analyst Tim Waterer said some of the risk premium in oil appeared to be coming out of prices because of hopes that diplomacy could reduce the conflict.
Any progress toward talks could reduce concerns about prolonged disruptions to crude production and shipping in the Middle East.
The possibility of diplomacy comes as the U.S. and Iran continue to exchange threats.
Iran has warned that it could use new weapons and attack targets it has not previously struck if the U.S. launches another offensive.
Houthi Attacks Keep Supply Risks in Focus
Military risks have not disappeared.
Yemen’s Iran-backed Houthis said they attacked targets in Riyadh on Saturday using missiles and drones.
The group also said it targeted a Saudi Aramco facility in Yanbu, an important Red Sea oil export hub.
Attacks on Saudi Arabia’s East-West pipeline have disrupted some crude movements toward the Red Sea.
Saudi Aramco has responded by increasing shipments through the Strait of Hormuz.
JPMorgan analysts said Middle East oil flows remained stronger than expected despite the disruptions.
Regional oil flows averaged about 17.1 million barrels per day during the previous 10 days, according to the bank.
Satellite data showed Saudi oil moving through the Strait of Hormuz averaged about 2.9 million barrels per day over six days, compared with around 700,000 barrels per day in August.
Reports that Saudi Arabia has offered additional crude to Asian refiners have also reduced immediate concerns about shortages.
WTI Drops Below $100
The move below $100 for WTI represents an important change from earlier in the Middle East conflict, when fears of supply disruptions pushed crude prices sharply higher.
Some of Monday’s decline may also reflect traders moving positions from the October WTI contract into November contracts ahead of Tuesday’s expiry.
Brent and WTI both touched their lowest levels since September 10 during Monday trading.
Falling oil prices are also easing some pressure on global markets because high energy costs have contributed to renewed inflation concerns.
European equities and U.S. stock futures moved higher Monday as crude prices declined.
Oil traders will now watch the UN meetings, U.S.-Iran relations and Saudi export flows for signs of whether the latest decline can continue.
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