Oil prices experienced an uptick on Tuesday following four consecutive sessions of decline, as the market keenly anticipated potential diplomatic discussions between the United States and Iran during the United Nations General Assembly in New York. Brent crude futures for November delivery saw a 1.7% increase, reaching approximately $102 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude for October rose by 1.7% to nearly $97 per barrel.
The prospect of a meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian, who is expected to attend the UN gathering, has captured the market’s attention. This potential engagement comes amid ongoing tensions in the Middle East, which continue to influence oil prices. While Saudi Arabia has increased its crude exports through the Strait of Hormuz to mitigate some supply concerns, the region remains fraught with uncertainty.
Further adding to the volatility, Yemen’s Houthi group, which is aligned with Iran, has carried out attacks that have exacerbated regional tensions. In response, China has called on Iran to help reduce these hostilities, particularly those involving Saudi Arabia.
In another development affecting oil supply, production at Libya’s major oilfield has been disrupted. An armed group reportedly shut a valve on the Sharara crude pipeline, leading to a decrease in output by approximately 200,000 barrels per day.