Brent Crude dipped 1% to $98.30 per barrel, while the U.S. benchmark West Texas Intermediate fell 1.4% to $89.49. This retreat follows a sustained period of volatility, pushing both benchmarks below key psychological thresholds. Traders are pivoting away from supply-shock fears as diplomatic activity increases on the sidelines of the UN General Assembly.

President Donald Trump confirmed that U.S. and Iranian representatives held a productive meeting, with further discussions expected shortly. Tim Waterer, chief analyst at KCM Trade, noted that the market is actively pricing in the possibility of a breakthrough despite the persistent use of aggressive rhetoric between the two nations. Beyond the diplomatic front, Saudi Aramco’s progress in restoring the East-West pipeline has provided additional downward pressure on prices. The conduit, crucial for bypassing the Strait of Hormuz, is currently operating at a reduced capacity, with plans to return to a flow of 4 million barrels per day within the coming weeks.