Global oil prices fell on Wednesday, with Brent crude slipping below $100 per barrel, after US President Donald Trump said representatives from Washington and Tehran had held “very good” and “very productive” talks at the United Nations.
Brent crude reached $98.41 per barrel, while US benchmark West Texas Intermediate (WTI) fell to $89.23 during Asian trading, according to market data cited in the report.
The decline came as traders assessed the possibility of diplomatic progress between the United States and Iran after months of conflict and disruption to energy supplies in the Middle East.
Trump told reporters that the US-Iran meeting lasted about three hours and that another meeting had been scheduled.
“Very good. Very productive. They have another one scheduled in the very near future,” Trump said.
The comments came only hours after Trump addressed the United Nations General Assembly, where he said he faced a major decision over whether to reach an agreement with Iran or take further military action.
Market analysts said the reported talks introduced the possibility of a diplomatic solution, reducing some of the risk premium that had pushed oil prices higher.
“The three-hour US-Iran meeting matters because it shifts the market from pure escalation pricing toward a genuine diplomatic process, even if a final deal still looks distant,” Stephen Innes of Quintex Intel said.
Oil prices have also been pressured by signs that additional Middle Eastern crude supplies could return to international markets.
Saudi Arabia has restarted operations on its East-West oil pipeline, according to sources cited by Reuters. The pipeline provides an alternative route for transporting Saudi crude to the Red Sea and helps reduce the kingdom’s dependence on routes affected by disruption around the Strait of Hormuz.
The pipeline had been shut following drone attacks earlier this month. Saudi Arabia is preparing to resume crude shipments from the Red Sea port of Yanbu, although the pipeline is initially operating below its full capacity. Reuters reported that restoring full capacity could take several weeks because pumping stations were damaged.
The developments have added to expectations of improved crude supply, helping push Brent below the $100 mark. Reuters reported that oil prices had already fallen sharply on Tuesday as Saudi crude flows improved and shipments through the Strait of Hormuz increased.
The Strait of Hormuz remains central to the oil market because of its importance to global energy shipments. Any sustained reduction in the disruption around the waterway could ease pressure on international crude prices.
For Nigeria, movements in international crude prices remain significant because oil is the country’s main export and a major source of government revenue. Changes in global crude prices can affect foreign exchange earnings, government revenue and domestic fuel-market conditions, although local petrol prices are also influenced by exchange rates, refining costs, logistics, taxes and other market factors.
The latest decline follows several weeks of volatility in the international oil market as traders responded to developments involving Iran, Saudi Arabia and other countries in the Middle East.
Brent had repeatedly traded above $100 since the conflict began, making Wednesday’s move below the threshold a notable development for energy markets.
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