Oil falls on US-Iran talks

President Donald Trump's announcement that no new strikes against Iran would take place before the November 3 midterm elections partially eased concerns over supply disruptions in the Middle East. Brent crude futures fell 0.7% to $103.53 per barrel, while US West Texas Intermediate (WTI) crude dropped 0.6% to $90.97. Iranian Foreign Minister Abbas Araghchi said Tehran was reviewing Washington's response to a proposal calling for the Strait of Hormuz to reopen within seven days. The statements strengthened expectations that the conflict, now entering its eighth month, could be resolved through diplomatic negotiations.

However, regional security risks and ongoing energy supply disruptions continued to limit oil's losses. The US Treasury Department added 17 vessels and several companies involved in transporting Iranian oil and petrochemical products to international markets to its sanctions list. Threats to tanker traffic in the Strait of Hormuz and the Persian Gulf persisted, while Hurricane Isaias caused major production disruptions in the US Gulf of Mexico. According to official figures, approximately 1.3 million barrels per day of regional oil production, representing 62.9% of total output, was temporarily shut down due to the hurricane. Investors continue to monitor developments in US-Iran negotiations, the potential reopening of the Strait of Hormuz, and the hurricane's impact on energy production.