International oil prices fell significantly on the 21st (local time) amid expectations that the United States and Iran could find a diplomatic solution.

On this day, Brent crude for November delivery on the London ICE Futures Exchange settled at $100.34 a barrel, down 3.4% from the previous session.

Based on closing prices, this was the lowest level since the 8th ($97.92), marking the largest daily drop since August 25.

At the New York Mercantile Exchange, the closing price for West Texas Intermediate (WTI) crude for October delivery also fell 4.5% from the previous trading day to $95.78 a barrel.

This was similarly the lowest figure since the 8th of this month ($93.03) based on closing prices.

This is interpreted as the market reflecting expectations that peace negotiations between the U.S. and Iran could gain rapid momentum.

U.S. President Donald Trump fueled market expectations the previous day by stating that he was "probably open" to the possibility of meeting Iranian President Masoud Pezeshkian at the UN General Assembly.

President Trump is scheduled to address the UN General Assembly on the 22nd, and President Pezeshkian on the 23rd, drawing keen attention to whether a summit-level meeting will materialize for the first time since the two countries engaged in hostilities.

Although President Trump also issued threats in a separate interview with Fox News, stating, "It's a question of when you blow the whole country (Iran) up," the market is placing more hope on the easing of tensions between the two nations.

Tamas Varga, an analyst at oil brokerage PVM, explained that investors are awaiting a breakthrough in peace talks this week.

Expectations that Saudi Arabia's oil exports, which had faced disruptions due to Houthi rebel attacks, would partially recover also acted as downward pressure on oil prices.

Tanker tracking data showed that Saudi state oil company Aramco loaded 14 million barrels of crude onto seven Very Large Crude Carriers (VLCCs) in the Persian Gulf the previous day. Saudi crude passing through the Strait of Hormuz over the past six days is estimated at an average of 2.9 million barrels per day.

However, market warnings regarding future oil price movements persisted.

Jay Woods, an analyst at Freedom Capital Markets, forecasted, "While diplomatic signs can alleviate fears of rising oil prices and inflation, additional escalation and localized export disruptions could drive up crude prices and complicate the Federal Reserve's next move."

[Copyright (c) Global Economic Times. All Rights Reserved.]