President Donald Trump reported "very good" and "very productive" three-hour talks with Iranian envoys in New York, held on the sidelines of the United Nations General Assembly. These discussions, mediated by Qatar, involved Trump's envoys Steve Witkoff and Jared Kushner. This marks the first meeting between top US and Iranian officials since a June ceasefire collapsed, leading to hopes for a diplomatic off-ramp from the ongoing seven-month conflict that has significantly impacted global energy markets.
Iran's foreign ministry spokesperson, Esmail Baghaei, confirmed the talks but stated they were aimed at conveying Iran's conditions for ending the war, including a halt to US "acts of aggression," an end to the naval blockade, and the release of Iranian assets. A senior Iranian official indicated that Iran could reopen the Strait of Hormuz within a week if the US eases military pressure and lifts its blockade of Iranian ports. The strait, which previously handled about 20% of global oil and liquefied natural gas shipments, has seen traffic severely disrupted, with confirmed transits averaging 6.98 million barrels a day in the seven days to September 20, a decrease of approximately 62% from the 18.3 million barrel pre-war baseline.
The prospect of a diplomatic solution and the potential reopening of the Strait of Hormuz led to a decline in oil prices. Brent crude futures fell by 0.9% to $98.37 a barrel, while US West Texas Intermediate futures dropped by 1.5% to $89.16 per barrel. Trump suggested that further talks might occur imminently. The US and Israel initiated air strikes on Iran on February 28, with Iran retaliating by attacking Israeli and US bases and blocking the Strait of Hormuz, causing crude exports from Iran to fall to zero in September from 893,000 barrels a day in July.
