Oil prices experienced a rebound on Tuesday, ending a streak of four consecutive losses, as investors closely monitored potential diplomatic talks between the United States and Iran at the United Nations General Assembly in New York. Brent crude futures for November rose by 1.7% to approximately $102 per barrel, while U.S. West Texas Intermediate (WTI) crude for October saw a similar increase, reaching nearly $97 per barrel.
The anticipation of a possible meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian added a layer of complexity to the global oil markets. Both leaders are expected to attend the UN Assembly, fueling speculation about the potential for easing tensions between Washington and Tehran.
Continued unrest in the Middle East has also played a role in supporting oil prices. Heightened tensions in the region, particularly involving attacks by Yemen’s Iran-aligned Houthi group, have contributed to a sense of uncertainty. In response to these tensions, China has called on Iran to help reduce Houthi attacks, especially those impacting Saudi Arabia.
Meanwhile, the Strait of Hormuz, a crucial chokepoint for oil shipments, has seen increased crude exports from Saudi Arabia. This uptick comes after disruptions in the East-West pipeline affected some shipments, providing some relief to concerns over global supply stability.
In Libya, production challenges have emerged as an armed group reportedly shut a valve on the Sharara crude pipeline, leading to a reduction in output by about 200,000 barrels per day at one of the country’s major oilfields. This development further underscores the fragile state of oil supply in the region.