President Donald Trump has said he would be open to meeting Iranian President Masoud Pezeshkian at the United Nations General Assembly in New York.

  • Iran reportedly offered to reopen the Strait of Hormuz if Washington takes initial steps to ease military pressure.
  • Brent crude futures maturing in November fell to $98.28 per barrel, while October WTI futures were at $93.28 per barrel.
  • The Iranian delegation attending the United Nations General Assembly in New York has been given full authority to pursue renewed diplomacy with the United States, Reuters reported.

Crude oil prices slipped Tuesday after Iran reportedly offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure, raising fresh hopes for a diplomatic breakthrough in the months-long conflict.

The Iranian delegation attending the United Nations General Assembly in New York has been given full authority to pursue renewed diplomacy with the United States, reported Reuters. 

As of this writing, Brent crude futures maturing in November traded at $98.28 a barrel, down 2.6%, while WTI crude futures maturing in October traded at $93.28 a barrel, down 2.6%. The selloff reversed an earlier rise in oil prices as traders reacted to the new development. 

The United States Oil Fund (USO), which tracks WTI, was down nearly 3%, while the ProShares UltraShort Bloomberg Crude Oil (SCO) was up more than 2% in Tuesday's premarket.

US-Iran Diplomacy In Focus At The UNGA

World leaders gather in New York for the United Nations General Assembly. President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, while the two governments exchanged threats over the weekend. 

That diplomatic opening comes alongside continued U.S. pressure. Treasury Secretary Scott Bessent told CNBC on Monday that Washington is “pressuring [Iran] like never before”, citing new sanctions powers covering aviation, maritime activity, crypto and gold.

Bessent also tied the Iran conflict directly to financial markets, saying long-term Treasury yields have shown an unusually high correlation with crude oil and refining spreads. He said that once the conflict ends, he expects oil supply to increase and rates to come down.

Oil Remains A Fed Inflation Risk

Before the U.S.-Israeli war with Iran began on Feb. 28, the Strait of Hormuz handled about 125 large commercial vessels per day and carried roughly one-fifth of global oil and LNG supplies. Visible traffic has since fallen sharply. According to Kpler data cited by Reuters, 17 commodity vessels crossed the strait over the last weekend, down from 37 a week earlier.

Chicago Fed President Austan Goolsbee on Monday highlighted oil as part of the inflation problem. He argued that persistent supply shocks cannot simply be “looked through” indefinitely if they keep inflation above the Fed’s 2% target, even though the policy response may be less aggressive than it would be in the case of demand-driven overheating.

For oil markets, the immediate focus remains whether Iran’s reported Hormuz proposal develops into substantive negotiations, and whether reopening the waterway actually restores meaningful volumes of crude and refined products.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was up marginally; the Invesco QQQ Trust ETF (QQQ) rose 0.15%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) edged 0.24% higher. Retail sentiment on Stocktwits surrounding DIA was in the ‘bearish’ territory, while sentiment for QQQ and SPY was ‘bullish.’

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