Oil falls over 2% as Iran sets terms on Hormuz

Oil prices fell on September 25, 2026, driven by hopes for a diplomatic solution between the United States and Iran to reopen the Strait of Hormuz. After rising sharply the previous day, Brent crude for November delivery fell 2.14% to 104.32 dollars per barrel. West Texas Intermediate for the same month dropped 2.33% to 92.41 dollars per barrel.

Iranian Foreign Minister Abbas Araqchi stated in New York during the UN General Assembly that he shared Iran's terms with US envoy Steve Witkoff on Tuesday, September 22, 2026. Araqchi stated that if certain conditions are met, the strait will open within seven days and negotiations will begin. According to The New York Times, Iran's demands include lifting sanctions on Iranian oil and ending the US naval blockade. US President Donald Trump confirmed discussing Iran during a meeting in Washington with Chinese President Xi Jinping.

Market analysts maintain a cautious stance. Barbara Lambrecht, an analyst at Commerzbank, noted that the climate in the oil market remains tense. Arne Lohmann Rasmussen, an analyst at Global Risk Management, questioned whether Washington would accept terms perceived as major concessions, adding that an imminent deal is doubtful.

Regional hostilities also persist. David Morrison of brokerage Trade Nation noted that Houthi forces continue to threaten shipping and Saudi Arabian energy infrastructure. French President Emmanuel Macron announced on Thursday, September 24, 2026, the deployment of military assets to protect the Yanbu oil port in Saudi Arabia against attacks by Yemeni Houthi fighters. Activity at Yanbu, which bypasses the Strait of Hormuz via the Red Sea, remains limited.