By Mardiyyah Abubakar
Oil prices fell on Wednesday after US President Donald Trump said talks between American and Iranian representatives at the United Nations were “very good” and productive.
Brent crude, the international benchmark, dropped 0.9 per cent to $98.41 per barrel, while US West Texas Intermediate (WTI) fell 1.4 per cent to $89.23.
Both benchmarks traded below $100 after repeatedly crossing the threshold since the Middle East conflict began in February.
Trump said the three-hour meeting was productive and that another round of talks had been scheduled.
His comments came hours after he told the United Nations that he faced a major decision on whether to pursue a deal with Iran or take further military action.
The talks have shifted market expectations towards a possible diplomatic process, although no final agreement has been reached.
The United States and Iran remain at odds nearly seven months after US-Israeli strikes triggered the conflict.
Iran has kept the Strait of Hormuz closed, while the US continues to enforce a counter-blockade of Iranian ports.
Oil prices also came under pressure after Saudi Arabia reportedly resumed operations along its East-West Pipeline, a key export route shut down following drone attacks.
Saudi Arabia is reportedly seeking to resume crude exports later this week, while Saudi Aramco has told some Asian refiners they could soon collect crude from Yanbu port.
