Brent crude futures for November delivery dropped 0.6% to $105.94 a barrel, and West Texas Intermediate fell 0.8% to $93.86, erasing gains of up to 5% recorded in the previous session.
Negotiators in New York are reportedly mapping a phased exit from the conflict, with Tehran agreeing to reopen the Strait of Hormuz in exchange for Washington easing its economic blockade. Reuters data showed only 17 commodity vessels crossed the strait over a recent weekend, far below the pre‑war average of about 125 vessels per day, though oil shipments continue at reduced volumes. Saudi Arabia said it intercepted six ballistic missiles fired by Yemen’s Iran‑backed Houthis, targeting the Taif and Yanbu regions in the Red Sea, reviving concerns over Saudi oil infrastructure after earlier damage to the East‑West pipeline that disrupted crude flows to the Yanbu export hub.
U.S. crude inventories for the week ended 18 September rose by 3 million barrels, contrary to expectations for a 641,000‑barrel draw. Gasoline stocks fell 1.7 million barrels and distillate inventories declined by 400,000 barrels.
Energy Secretary Chris Wright contacted major refiners to assess support for a voluntary diesel export restriction amid record U.S. diesel prices. The White House later denied reports of a planned 90‑day export ban.
