Oil Prices Fall as Markets Watch US-Iran Diplomacy and Saudi Shipments

Oil prices fell to their lowest level in more than a week on Monday as investors looked for signs of diplomatic progress in the Iran war.

Market participants also watched Saudi Arabia’s oil shipments for signs of recovery. However, continued attacks by Yemen’s Houthi movement kept regional supply risks in focus.

Brent and WTI Fall More Than 2%

Brent crude futures touched their lowest level since September 10 before trading at $101.71 a barrel by 0213 GMT. The contract fell $2.16, or 2.08%, after declining 0.91% on Friday.

US West Texas Intermediate (WTI) crude dropped $2.15, or 2.14%, to $98.15 a barrel. WTI had fallen 1.58% in the previous session.

WTI also slipped below the key $100-a-barrel level. A Singapore-based broker said some investors may have rolled their positions from the October contract into November ahead of the October contract’s expiry.

Tim Waterer, chief market analyst at KCM Trade, said some of the risk premium appeared to be leaving oil prices as investors hoped for a diplomatic route to de-escalate the US-Iran war.

He cautioned, however, that it remained uncertain whether those expectations would materialise.

Trump Open to Meeting Iranian President

Iran and the United States exchanged fresh threats on Sunday as diplomatic efforts remained stalled.

PSX Gains Over 800 Points as KSE-100 Rises in Early Trading

US President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian. The Iranian president is expected to travel to New York this week for the United Nations General Assembly.

Iran has also conveyed conditions to mediators for a possible return to negotiations, according to Al Jazeera, which cited Iranian security chief Mohsen Rezaei.

The developments have raised hopes among some investors that diplomatic efforts could reduce tensions and ease pressure on regional energy supplies.

Houthi Attacks Keep Supply Risks Elevated

Regional tensions remained high as Yemen’s Iran-backed Houthis claimed attacks on what they described as sensitive sites in Riyadh.

The group also said it targeted an Aramco facility in Yanbu on Saudi Arabia’s Red Sea coast. Yanbu serves as an important oil export hub.

According to three Iranian sources cited by Reuters, China has asked Iran to help restrain the Houthis after Saudi Arabia appealed to Beijing following the attacks.

Houthi attacks on Saudi Aramco’s East-West pipeline have also affected the movement of Saudi crude. The state energy company has increased exports through the Strait of Hormuz this month and next after suspending some shipments through Yanbu.

Saudi Oil Exports Recover

Provisional data from analytics firm Kpler showed Saudi oil exports had recovered to more than 4 million barrels per day (bpd) so far in September.

The figure compares with 2.4 million bpd in August. That was the lowest monthly level recorded by Kpler’s data since at least 2013.

JPMorgan analysts said Middle East oil flows had remained relatively strong despite disruptions to Saudi Arabia’s East-West pipeline.

In a September 18 note, the analysts said total regional oil flows averaged 17.1 million bpd over the previous 10 days. That was 6.1 million bpd below the 2025 average.

The analysts also highlighted a shift in Saudi export routes. Satellite data showed Saudi oil moving through the Strait of Hormuz averaged 2.9 million bpd over the previous six days.

That compared with only 700,000 bpd in August, according to the data cited by JPMorgan.