Oil prices ease as Gulf supplies recover, US-Iran talks draw focus

Global oil prices declined on Thursday as improving crude exports from the Gulf reduced concerns about supply shortages, while investors monitored renewed diplomatic efforts between the United States and Iran.

Brent crude futures dropped 1.1% to $96.92 a barrel, while US West Texas Intermediate fell 1.4% to $89.18. Both benchmarks had gained about $1 a barrel in the previous session.

The decline came as Gulf oil shipments showed signs of recovery. Saudi Arabia has resumed crude tanker loadings from Yanbu after restarting operations on its East-West Pipeline, helping ease pressure on global supplies.

Higher US crude inventories also weighed on prices. Data from the Energy Information Administration showed that US commercial crude stocks increased by 922,000 barrels to 427.3 million barrels in the week ending September 25. Analysts had expected inventories to decline.

Market sentiment was also influenced by renewed diplomatic contacts between Washington and Tehran. Iran said it had received a US response to its latest proposal aimed at reviving a ceasefire in the Gulf.

US President Donald Trump, however, rejected reports that Washington was prepared to offer sanctions relief and release frozen Iranian funds in exchange for specific steps by Tehran on its nuclear programme.

Analysts said progress in US-Iran diplomacy could reduce the geopolitical premium currently built into oil prices, although a major breakthrough remains uncertain.

Meanwhile, Gulf oil exports have recovered significantly, with estimates putting combined shipments at around 23.3 million barrels per day during the past week, broadly matching the 2025 average.