Oil prices fell on Thursday after Iran signaled its willingness to pursue diplomacy to end its war with the United States.
Brent crude futures fell 92 cents, or 0.9 per cent, to $102.16 a barrel at 0400 GMT, while West Texas Intermediate futures dropped 77 cents, or 0.8 per cent, to $91.39.
Iran and the United States differ over how to end the war, but a senior Iranian official said on Wednesday that Tehran would continue diplomatic efforts.
The official said Iran was reviewing Washington’s response to its peace proposals, which seek an end to the U.S. naval blockade of Iranian ports and the reopening of the Strait of Hormuz.
Iranian President Masoud Pezeshkian told the UN General Assembly that Tehran would not surrender to U.S. pressure.
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Priyanka Sachdeva, head of market insights at Phillip Nova, said oil prices fell as the market reduced part of its geopolitical risk premium amid recovering Gulf supply and growing hopes for a diplomatic breakthrough between Iran and the United States.
She said Brent retained a larger geopolitical and sea-route premium because international crude faces greater exposure to disruptions in the Middle East and the Strait of Hormuz, while WTI benefits from relatively insulated U.S. supply.
Iranian security chief Mohsen Rezaei said on Wednesday that Iran would not reopen the Strait of Hormuz until the United States meets its conditions.
U.S. Secretary of State Marco Rubio told reporters on Wednesday that reaching a deal with Iran would require sustained negotiations over time.
Rubio also said President Donald Trump had military options available.
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