Oil prices saw an uptick on Tuesday, halting a four-session losing streak as investors closely watched for any diplomatic developments between the United States and Iran during the United Nations General Assembly in New York. Brent crude futures for November rose by 1.7%, reaching approximately $102 per barrel, while U.S. West Texas Intermediate (WTI) crude for October also climbed 1.7% to nearly $97 per barrel.
The market’s focus remains on the potential for talks between U.S. President Donald Trump and Iranian President Masoud Pezeshkian, who is set to attend the UN gathering. Any diplomatic engagement between Washington and Tehran could have significant implications for oil markets, given the geopolitical tensions and sanctions affecting Iran’s oil exports.
Additional support for oil prices comes amid ongoing tensions in the Middle East. Despite some relief provided by increased shipments through the Strait of Hormuz, thanks to Saudi Arabia’s boosted crude exports following disruptions in its East-West pipeline, regional instability persists. Attacks by Yemen’s Iran-aligned Houthi group continue to add uncertainty. China has called on Iran to assist in reducing these Houthi attacks, underscoring the broader regional complexities.
In Libya, production at the Sharara oilfield has been impacted after an armed group reportedly closed a valve on the pipeline, reducing output by about 200,000 barrels per day. This development adds another layer of complexity to the global oil supply landscape, further influencing market dynamics.