Oil Prices Slump on Hope of US-Iran Talks, Saudi Exports
Oil prices fell more than 2% Monday as hopes for renewed US-Iran talks and a recovery in Saudi crude exports eased supply concerns that have kept prices elevated in recent weeks.
International benchmark Brent crude futures for November delivery traded at $101.68 a barrel, down 2.12% from the previous close of $103.87.
US benchmark West Texas Intermediate (WTI) crude futures for November delivery fell 2.32% to $93.85 a barrel from $96.08. Qatar said Sunday that its mediation team has been discussing proposals for nearly two weeks to restart talks between the US and Iran.
“We have been exchanging various ideas for nearly two weeks on resuming talks between Washington and Tehran,” Foreign Ministry spokesman Majed al-Ansari said, according to Qatari media.
Qatar, along with Pakistan, has been mediating between the two sides.
“We are working through our mediation team with Tehran and Washington to see whether talks can resume, and our mediators are currently moving between different capitals in the hope of making progress on this track,” al-Ansari said.
He added that Qatar had received assurances from US administration officials that Washington wanted to reach an agreement.
Al-Ansari said there was a need for “a regional solution that achieves stability and an international understanding that protects waterways such as the Strait of Hormuz.”
“Subjecting waterways to the sovereignty of a single state and using them as a weapon will set a dangerous precedent for all of us,” he added.
The diplomatic efforts raised hopes that tensions between Washington and Tehran could ease, reducing concerns over possible supply disruptions in the region and putting downward pressure on oil prices.
Oil prices also came under pressure as Saudi Arabia increased crude exports through the Strait of Hormuz following disruptions to its East-West Pipeline.
Preliminary data from Kpler cited by media showed that Saudi crude exports, which fell to 2.4 million barrels per day (bpd) in August, their lowest level since 2013, rose above 4 million bpd in September so far.
The increase suggests Saudi Arabia has partially restored crude flows despite the disruption to its alternative export route through the Red Sea.
JPMorgan analysts said in a Sept. 18 report that oil flows from the Middle East remained relatively strong despite the disruption to Saudi Arabia’s East-West Pipeline.
Total oil flows from the region averaged 17.1 million bpd over the previous 10 days, about 6.1 million bpd below the 2025 average, the analysts said. The figures indicate that regional oil flows remain significantly below normal levels, even as Saudi exports recover.
As a result, easing diplomatic tensions and stronger Saudi exports are weighing on prices, while continued restrictions on traffic through the Strait of Hormuz are limiting the decline.
