
Brent crude falls to $99.70 and WTI drops to $93.80 following reports of potential Strait of Hormuz reopening.
Oil prices fell on Tuesday as optimism grew for a diplomatic solution to the U.S.-Iran conflict ahead of UN General Assembly talks, outweighing earlier concerns sparked by U.S. sanctions on Iranian airlines.
AI-generated summary
Tensions between the U.S. and Iran have impacted global oil markets and shipping routes like the Strait of Hormuz.
Oil prices reversed early gains on Tuesday amid optimism that prospects for a diplomatic solution to the U.S.-Iran war are improving ahead of closely watched United Nations General Assembly talks in New York.
Concerns of growing Iran-U.S. tensions had initially lifted oil prices after U.S. Treasury Secretary Scott Bessent told CNBC that all Iranian airlines will be shut down from Wednesday.
However, oil prices swung lower after a report from Japanese news wire Kyodo, which claimed Iran had offered to reopen the strategically crucial Strait of Hormuz within seven days. The report cited a single source and could not be independently verified by CNBC.
Futures for international benchmark Brent crude for November delivery were down 0.64% at $99.70 a barrel as of 5:11 a.m. ET. U.S. West Texas Intermediate futures for October plunged 2.07% to $93.80 per barrel, easing from a session high of $97.42.
Bessent told CNBC that all Iranian airlines will be shut down from Wednesday. "How do we do that? That if they land, you cannot provide them with fuel. You cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," Bessent said on CNBC's "Squawk Box."
Investors are still eyeing a possible diplomatic solution to the Mideast conflict, following news that Iranian president Masoud Pezeshkian is set to fly to the United Nations in New York.
Pezeshkian will address the assembly and present Iran's positions on "international developments," with a particular focus on its war with the U.S. and Israel, according to the country's semi-official Tasnim news agency. Talks with the leaders of several countries are also scheduled to take place Sept. 22 to 26, and 28, on the sidelines of the event.
AI outlook — possibilities, not facts
Iranian President Masoud Pezeshkian will address the UN General Assembly and hold talks.
Very likely · Within days

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