Oil fell Wednesday, amid optimism that supply disruptions would ease following U.S.-Iran talks, which raised hopes of a diplomatic solution to the conflict in the Middle East.
Futures for international benchmark Brent crude 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.
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.
"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.