WASHINGTON (dpa-AFX) - Extending yesterday's decline, crude oil prices have moved lower on Thursday after supply-related concerns eased amid Saudi Arabia's efforts to get its vital oil pipeline, which was hit by Houthi attacks, back to operations and U.S. President Donald Trump's remarks on talks with Iran. However, attempts by Houthis to gain control over the Bab el-Mandeb region renewed escalation threats.
WTI Crude Oil for October delivery was last seen trading down by $0.60 (or 0.59%) at $101.83 per barrel.
Despite the impasse in the diplomatic process, the U.S. and Iran have refrained from attacking each other for the past few days.
Iran is showing no let-up in its efforts to maintain a stronghold over the Strait of Hormuz trade route.
Last week, U.S. President Donald Trump claimed that the U.S. war with Iran will end soon after the November midterm elections in the U.S. His message gave way for speculation that the conflict could drag on until November and consequently, crude oil prices moved higher.
Later, Trump stated that though Iran is very badly seeking talks with the U.S., his administration is not keen on negotiating with Iran.
On Monday, Trump stated that the U.S. is open to the concept of negotiations with Iran.
Trump went on to state that Iran wanted a deal with the U.S. very badly, but Iran dismissed Trump's claims and categorically asserted that talks can happen only if Iran's conditions are met with.
Today, Trump stated that the U.S. is hopefully towards the end of its war with Iran.
Repeating that Iran wants a deal with the U.S., Trump stated that the U.S. heard this request directly from Iran. Until now, Iran has not confirmed Trump's claims.
In addition, citing three sources with direct knowledge of the affairs, Axios reported that Trump is set to hold a meeting with several leaders from the Gulf Cooperation Council next week in New York to discuss the next steps in the U.S.-Iran war.
Reportedly, the meeting would likely focus on the U.S. ideas for a post-war strategy.
Aside from the U.S.-Iran conflict, the military confrontation between Saudi Arabia and Iran-backed Houthi militants of Yemen has compounded the Middle East tensions.
Last week, Houthi militants launched drone attacks on the vital East-West pipeline, which carries oil across Saudi Arabia to its Red Sea coast. Prior to the attacks, the pipeline had been carrying around 4 to 5 million barrels per day.
However, Bloomberg reported that Saudi Arabia's Aramco is working to bypass a damaged section of its 1,200-km East-West Pipeline and restore roughly half its capacity within days, with full restoration targeted in approximately six weeks.
Supply concerns also eased following yesterday's reports that stated that Saudi Arabia has begun to offer crude cargoes to Asian nations through Oman.
Escalation concerns, however, are alive with Houthi militants attempting to take over the Bab el-Mandeb Strait region in the Red Sea.
In their attempt to take control of the Bab el-Mandeb Strait, the Houthis seized the islands of Greater and Lesser Hanish.
Prior to that, the rebel group captured the strategically significant Red Sea port city of Mokha and later the Perim Island in the strait.
The Bab el-Mandeb Strait is the southern gateway to a vital shipping route that connects Asia and Europe through the Red Sea and Suez Canal.
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