Oil Slips As U.S. And Iran Hold Three-Hour Talks At UN

Oil prices fell on Wednesday after President Donald Trump said United States officials held a "very good meeting" with Iran's delegation that lasted about three hours. The talks raised hopes of a diplomatic route out of the Middle East conflict, easing fears of supply disruptions.

Brent crude futures for November delivery dropped 0.89% to $98.37 a barrel as of 1:12 a.m. ET. U.S. West Texas Intermediate futures for November fell 1.5% to $89.16 per barrel.

Trump's 'big decision'

Trump said Tuesday that U.S. officials had a "very good meeting" with Iran's delegation and that it lasted about three hours. Earlier, in his address to the United Nations, he said he has a "big decision" over whether to reach a deal with Tehran or "annihilate" the country.

The market read the engagement as a sign that tensions could cool. Traders have spent weeks pricing in the risk of strikes on energy infrastructure and shipping routes across the Gulf.

Strait of Hormuz in focus

Reuters reported on Tuesday that Iran could reopen the Strait of Hormuz within a week if the U.S. agrees to ease military pressure and lift its blockade of Iranian ports. The strait carries a large share of global seaborne crude, so any reopening would remove a major supply risk from the market.

Paolo Broccardo, chief executive officer at private digital bank BankPro, said Pakistan's mediation efforts with Tehran could also reduce the risk of a broader escalation.

He added that oil prices are unlikely to see a huge jump for now. "Over the past five consecutive sessions, the price has fallen by almost 12%, retreating once again from the 'intervention zone' above $100, where we have repeatedly seen intensified peace-building efforts from both sides," Broccardo said.

The pullback came after Brent pushed past the $100 mark, a level that has repeatedly drawn diplomatic intervention from both sides in recent weeks.

What it means for Nigeria

Nigeria sells crude and buys refined products, so a softer Brent price cuts both ways. It narrows the landing cost of petrol and other imports, which feeds into pump prices and transport costs. It also trims the dollar earnings that fund the federation account and support the naira.

For now, the market is watching whether the U.S. and Iran keep talking. If the Strait of Hormuz reopens within the week, the risk premium built into crude will keep draining out. If the talks collapse, the same premium returns quickly, and with it pressure on Nigeria's import bill.