Oil prices retreated 2% as diplomatic optimism and a surge in Saudi crude exports via the Strait of Hormuz offset concerns regarding recent attacks on energy infrastructure.
Brent futures fell 2% to $101.75 on hopes of US-Iran diplomacy and recovering Saudi exports, reducing risk premium.
WTI futures dropped 2% to $98.34 as diplomatic progress and increased Saudi shipments via Hormuz eased supply concerns.
Saudi Aramco's East-West pipeline disruption affected Yanbu exports, but increased Hormuz shipments partially offset the impact.
Brent and WTI crude futures fell 2% on Monday, hitting their lowest levels since September 10. Markets are pricing in potential diplomatic de-escalation between the US and Iran during the UN General Assembly, while increased Saudi shipments through the Strait of Hormuz have eased immediate supply concerns despite ongoing regional infrastructure attacks.
Prices are falling due to market optimism regarding potential diplomatic talks between the US and Iran at the UN General Assembly, alongside evidence that Saudi Arabia has successfully rerouted exports to maintain supply levels.