Oil prices hit one-week low over boost to diplomacy in US-Iran war

Oil prices slid to their lowest in more than a week on Monday, September 21, 2026, on hopes diplomacy in the Iran war will get a chance ‌this week amid a United Nations meeting.

Brent crude futures and US West Texas Intermediate crude touched their lowest since September 10 earlier on Monday, with Brent at $101.71 a barrel by 0213 GMT, down $2.16, or 2.08%, after settling 0.91% lower on Friday.

US West Texas Intermediate crude lost $2.15, or 2.14%, to $98.15 a barrel following a 1.58% drop in the previous session.

The chief market analyst at KCM Trade, Tim Waterer, said: “It seems that a degree of risk premium is being removed from ⁠oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week.

“Whether that hope proves to be warranted or not is another question. Time will tell.”

Trump cuts short Camp David stay amid Middle East tensions

Iran and the United States exchanged new threats on Sunday amid the stalemate, although President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the United Nations General Assembly.

Iran has conveyed its conditions to mediators for re-engaging in negotiations aimed at ending the war with the US, Al Jazeera cited Iran’s security chief, Mohsen Rezaei, as saying in ‌an interview ⁠on Saturday.

However, tensions in the Middle East remained elevated as Yemen’s Iran-backed Houthis said they attacked “sensitive” sites in the Saudi capital of Riyadh on Saturday with missiles and drones, as well as an Aramco facility in the Red Sea city of Yanbu, a key oil export hub.