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Oil prices fell as the United States and Iran engaged in significant discussions mediated by Qatar during the UN General Assembly in New York. Iranian Foreign Minister Abbas Araghchi met with US envoys Steve Witkoff and Jared Kushner for three hours, with US President Donald Trump later describing the meeting as very productive despite earlier claims that no meeting was scheduled. Witkoff characterized the talks as lengthy and indirect, with mediators facilitating communication between the two sides, and expressed hope for constructive outcomes from the discussions.
During the talks, Iran outlined its conditions for reopening the Strait of Hormuz, which included an end to the US naval blockade of Iranian ports, the release of frozen Iranian assets, and a cessation of hostilities on all fronts. Iranian officials also called for an end to what they termed US aggression and economic warfare against Iran. The discussions come amid a backdrop of recovering oil supply, as Saudi Arabia resumes operations on its East-West pipeline and oil flows through the Strait of Hormuz improve, contributing to the recent decline in crude prices.
In related economic news, Australia's S&P Global flash composite PMI indicated a slowdown in growth, dropping to 50.8 in September from 52.7, marking the weakest performance of the third quarter. Manufacturing has entered contraction for the first time since March, and businesses have begun to cut jobs. The Asian Development Bank maintained its growth forecast for China at 4.6% for 2026 while lowering its inflation outlook due to softer demand. Attention is now focused on Australia's upcoming labor force data, which is expected to show a modest increase in employment.
Source: KLEA News