Oil prices rebounded on Tuesday, ending a four-day losing streak as investors anticipated potential diplomatic talks between the United States and Iran at the United Nations General Assembly in New York. Brent crude futures for November delivery rose 1.7% to approximately $102 per barrel, while U.S. West Texas Intermediate (WTI) crude for October similarly increased by 1.7% to nearly $97 per barrel.
The possibility of a meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian, who is attending the UN assembly, has been a focal point for markets. Such talks could influence future oil supply scenarios, as tensions between Washington and Tehran continue to impact global energy dynamics.
Alongside potential diplomatic developments, continuing instability in the Middle East also underpins oil prices. Tensions have been heightened by Yemen’s Iran-aligned Houthi group, which has conducted attacks affecting regional security. In response, China has called on Iran to help mitigate these hostilities, particularly involving Saudi Arabia.
Increased activity in the Strait of Hormuz has somewhat alleviated supply concerns. Saudi Arabia has ramped up its crude exports through this critical waterway after previous disruptions in its East-West pipeline affected oil shipments.
Compounding these regional challenges, Libya’s oil production faced setbacks as an armed group reportedly shut a valve on the Sharara crude pipeline, resulting in a reduction of approximately 200,000 barrels per day from one of the country’s major oilfields. This development adds another layer of uncertainty to the global oil market.