Oil prices mixed after U.S. and Iran talk for hours at UN meeting

Oil prices were mixed Wednesday as investors weighed the implications of U.S.-Iran talks, with hopes of a diplomatic solution to the Middle East conflict tempered by President Donald Trump's latest threat to "annihilate" the country.

Futures for international benchmark Brent crude for November delivery ticked 0.26% higher to $99.51 a barrel as of 4:17 a.m. ET, reversing early losses. U.S. West Texas Intermediate futures for November fell 0.48% to $90.09 per barrel.

President Donald 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 U.N., Trump said he has a "big decision" over whether to reach a deal with Tehran or "annihilate" the country.

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.

brent

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

Oil prices are also unlikely to see a huge jump for now, he said.

"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.

wti