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Oil prices fell on September 22, 2026, as Saudi Arabia resumed crude exports and diplomatic discussions between the United States and Iran progressed. Brent crude futures settled at approximately $99 per barrel, down about $1, while West Texas Intermediate (WTI) closed near $95, also down roughly $1.20. Both benchmarks had experienced declines of over $2 earlier in the trading session before recovering some losses.
The decrease in oil prices was primarily driven by improved supply conditions. Saudi Arabia restarted its East-West pipeline, which had been closed since September 13 due to drone attacks, and is preparing to resume exports from the Red Sea port of Yanbu. Recent data indicated that Saudi crude flows through the Strait of Hormuz increased to around 2.9 million barrels per day, up from approximately 700,000 barrels per day in August. This resumption of supply is expected to alleviate some market pressures, particularly in the refined products sector, where diesel prices have reached record highs in both the United States and Europe.
Diplomatic signals regarding US-Iran relations remain mixed. A senior Iranian official suggested that Tehran could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade. However, Iranian media later contradicted this statement, emphasizing that negotiations would only proceed if the US met specific conditions, including an end to military threats and the lifting of sanctions. US President Donald Trump described a recent meeting with an Iranian delegation as productive but indicated that a peace deal would not materialize until after the US midterm elections in early November, dampening immediate hopes for a resolution.
Source: KLEA News