Oil prices dropped to their lowest in 11 days on Monday, as investors hoped to see diplomatic progress on the Iran war with the UN meeting this week, as well as a partial recovery from shipments in Saudi Arabia.
On Monday, both Brent Crude and US West Texas Intermediate hit their lowest since September 10, approaching $100 a barrel.
It comes after Iran and the US exchanged fresh threats on Sunday, although Donald Trump said he would be willing to meet with his Iranian counterpart, who is expected to attend the UN General Assembly.
Tehran has reportedly expressed its conditions to mediators for re-engaging in discussions, but fighting in the region has raged on, as Yemen’s Iran-backed Houthis said they have attacked the Saudi capital and the Aramco facility in the Red Sea city of Yanbu.
The attacks on Aramco’s east-west pipeline have triggered the girl to boost exports through the Strait of Hormuz after stopping some shipments via Yanbu.
The Houthis are also pressing to sever the Red Sea coast from remaining locations held by Saudi-backed forces. Following the attacks, China has urged Tehran to help fight the Houthis.
