Oil prices fall on supply outlook, hopes for US-Iran talks

Oil prices extended declines on Wednesday, September 23, 2026, as investors eyed improved Gulf supply after Saudi Arabia restarted operations at a critical pipeline.

Hopes for a diplomatic solution to ‌the United States-Iran war also weighed on prices.

Brent crude futures fell $1.09, or 1.1%, to $98.16 a barrel as of 0421 GMT, while West Texas Intermediate futures fell $1.50, or 1.67%, to $89.01 per barrel.

Both contracts have declined for six consecutive sessions to around two-week lows.

While United States President Donald Trump warned on Tuesday that he could “annihilate” Iran, he also said his envoys Steve Witkoff and Jared Kushner had held productive talks with mediators of Iran to end the war.

“I think there’s a lot of momentum for them to ⁠make a deal,” Trump said.

Optimism around improved supply and a push to end the nearly seven-month conflict drove benchmark Brent down to close below $100 a barrel on Tuesday for the first time since September 8.

The chief analyst at KCM Trade, Tim Waterer, told Reuters: “The market is currently feeling more constructive about the global oil supply picture than it was a few weeks ago.

“The meeting of US and Iranian delegations in New York has given traders a glimmer of hope. Despite the continued tough rhetoric, including threats of ‘annihilation,’ the market is choosing to price in the possibility of talks.”