Oil prices fall to 2-week low on hopes for Saudi pipeline, Iran diplomacy

Key Points:

• Oil prices fell for a fifth consecutive session, with Brent crude dipping below $98 per barrel and U.S. crude falling under $93, hitting their lowest levels since September 8 amid hopes for renewed diplomacy to end the Iran conflict and optimism over the reopening of a key Saudi pipeline.
• Reports suggested Iran might reopen the Strait of Hormuz soon if the U.S. eases pressure, though Iranian sources called these reports unreliable; meanwhile, President Trump indicated openness to meeting Iranian President Masoud Pezeshkian, signaling potential diplomatic progress.
• The Saudi east-west pipeline, closed after attacks by Iran-backed Houthi rebels, is reportedly being tested and could resume exports soon, alleviating concerns about disrupted oil supplies that had contributed to recent price spikes.
• Despite recent declines, oil prices remain over 60% higher than at the start of the year, fueling record-high retail gasoline and diesel prices in the U.S., with gasoline averaging $4.47 per gallon and diesel reaching an all-time national average of $6.52 per gallon.
• Bond yields fell alongside oil prices, with the 10-year U.S. Treasury yield dropping to 4.92%, and global stock markets, including European indexes and U.S. futures, rallied following the easing of energy price pressures.