Oil prices fell Friday after a report said U.S. and Iranian negotiators in New York are discussing a phased agreement that could help end the standoff in the Persian Gulf.
November Brent crude futures, the international benchmark, declined 1% to $93.66 a barrel. U.S. West Texas Intermediate futures for November fell 0.68% to $105.86 per barrel.
Reuters, citing a senior Iranian official, reported that the most realistic path forward would be for Tehran to allow navigation through the Strait of Hormuz in exchange for the U.S. ending its naval blockade.
The U.S. and Iran had already agreed to that framework under a June 17 memorandum of understanding, but the arrangement quickly collapsed and fighting resumed. It remains unclear what is different in the current round of talks.
According to Al Jazeera, Iran now wants the U.S. to return to the memorandum of understanding before the U.S. midterm elections. The broadcaster said Iranian President Masoud Pezeshkian made that point to media outlets on the sidelines of the U.N. General Assembly.
David Morrison, senior market analyst at Trade Nation, said the two sides are understood to have been communicating through mediators. He added that investors remain worried about sticky inflation, higher energy prices and bellicose statements from the U.S. and Iran at the U.N. General Assembly in New York.
