Iran hints at talks to US as leaders gather at UN
Saudi Arabia is preparing to restart its East-West oil pipeline following drone attacks, which has caused a decline in global oil prices. Diplomatic efforts involving the US, Iran, and China are also contributing to market speculation regarding Middle East stability.
Why it matters
Fluctuations in oil supply and geopolitical tensions in the Middle East directly impact global energy costs and economic stability.
Saudi Arabia on Tuesday signalled that it was preparing to restart its key East-West pipeline and resume crude exports from its Red Sea coast, sending oil prices briefly to a two-week low.
Brent crude, the international benchmark, dropped nearly 3 per cent to as low as $97.43 (€85.23) a barrel. It later rebounded to $99.64, still down about 4 per cent this week.
On Tuesday, one person with knowledge of the situation confirmed reports that the pipeline would resume flows by the end of the week. Saudi Aramco, the national oil company, did not immediately respond to a request for comment.
Traders have also been selling oil on speculation that this week’s diplomatic meetings between Iran , China and the US would lead to a potential breakthrough in efforts to end the conflict in the Middle East.
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