Oil prices fall to one-week low as Iran diplomacy hopes grow

OIL prices fell to their lowest level in more than a week on Monday as investors weighed hopes of renewed diplomatic efforts to end the US-Iran war against continued disruptions to Middle East oil supplies.

Brent crude futures dropped to $100.6 a barrel by 8pm Nigerian time, after declining 0.91 percent in the previous session.

US West Texas Intermediate crude fell to $92.54 a barrel, extending its previous-session loss of 1.58 percent.

Both benchmarks earlier touched their lowest levels since September 10. The decline came as investors looked to the United Nations General Assembly in New York for signs of a possible diplomatic opening between Washington and Tehran.

President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian, who is expected in New York this week, while Iran and the United States exchanged fresh threats on Sunday amid the continuing conflict, Arab News reported.

“It seems that a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week,” Chief Market Analyst at KCM Trade, Tim Waterer, said.

READ ALSO: Oil price breaks $100 as US-Iran conflict deepens

He cautioned that it remained uncertain whether the diplomatic expectations would materialise.

Iran has also conveyed conditions to mediators for a possible return to negotiations aimed at ending the war, according to comments by Iranian Security Chief, Mohsen Rezaei cited by Al Jazeera.

The prospect of easing tensions is important for oil markets because the conflict has disrupted production, exports and shipping routes across the Middle East, while attacks by Yemen’s Iran-backed Houthis continue to pose risks to Saudi energy infrastructure.

The Houthis said they attacked what they described as sensitive sites in Riyadh with missiles and drones on Saturday, as well as an Aramco facility in Yanbu on the Red Sea.

The attacks have affected Saudi Arabia’s East-West oil pipeline and prompted Saudi Aramco to redirect more crude through the Strait of Hormuz.

READ ALSO: Hormuz crisis, high oil prices accelerate China’s shift away from crude

That shift has helped Saudi oil exports recover to more than 4 million barrels per day so far in September, from about 2.4 million bpd in August, according to provisional Kpler data.

August’s export level was the lowest recorded since at least 2013, the data showed.

JPMorgan analysts said Middle East oil flows had remained stronger than expected despite the disruption to Saudi Arabia’s East-West pipeline.

Total oil flows averaged 17.1 million bpd over the 10 days to September 18, about 6.1 million bpd below the 2025 average, the analysts said.

Saudi Arabia has accounted for much of the recent recovery, with satellite data showing its oil flows through the Strait of Hormuz averaging 2.9 million bpd over the previous six days, up sharply from 700,000 bpd in August.

The improved flow of Saudi crude has eased some supply concerns in the market, adding to the downward pressure on prices as traders assess whether diplomatic efforts can reduce the broader geopolitical risk premium.