Oil prices decline as U.S. and Iran discuss phased deal to resolve Gulf standoff

Oil fell Friday following a report that U.S. and Iranian negotiators in New York are discussing a phased deal to end the standoff in the Persian Gulf.

Futures for international benchmark Brent crude for November delivery declined 0.92% to $105.68 a barrel. U.S. West Texas Intermediate futures for November dropped 1.52% to $93.09 per barrel.

Reuters reported that a senior Iranian official had said the most realistic path forward is for Tehran to allow navigation in the Strait of Hormuz in exchange for the U.S. ending its naval blockade.

The U.S. and Iran agreed to this approach under a June 17 memorandum of understanding, but the deal quickly collapsed into renewed fighting. It is unclear what is different about the current negotiations.

Iran now wants the U.S. to return to the memorandum of understanding before the U.S. midterm elections, according to Al Jazeera, which reported that this was told to media outlets by Iranian President Masoud Pezeshkian on the sidelines of the UN General Assembly.