Business Desk- Crude Oil Price: There is a deadlock in talks between America and Iran. US President Donald Trump has refused to accept Iran’s conditions. Despite this, crude oil prices continue to fall. By 9.50 am on Thursday, October 1, 2026, Brent crude fell 1.09% to $96.962 per barrel and WTI crude fell 1.29% to $89.256 per barrel.
Why is the oil price falling?
The main reason for the fall in crude oil prices is the improvement in supply. Saudi Arabia has restored oil supply from its East-West pipeline. At present it has started at half capacity, but due to this the oil supply is getting closer to the pre-war level.
At the same time, the supply of oil from the Strait of Hormuz has increased to 13.2 million barrels per day. Due to increase in supply, the concern of immediate shortage in the market has reduced and there is pressure on crude.
Still deadlock in US-Iran talks
Despite the fall in oil prices, the situation between America and Iran has not become clear. Iran had sent a proposal with 7 conditions to America through Qatar. In this, many demands were made including opening of the Strait of Hormuz.
Iran says that the blockade on waterways will continue until America accepts its conditions. On the other hand, Tehran has also received a proposal from America with conditions for opening the Strait of Hormuz.
Increased concern of oil importing countries
For big oil importing countries, not only price rise is a concern, but supply crisis is also a big issue. At present, crude has become cheaper due to improvement in supply, but America-Iran tension has not completely ended.
If tension increases again between the two countries or a war situation arises, then Geopolitical Risk may increase and pressure on crude oil prices may be seen again. Therefore, the market’s eyes are now on US-Iran talks and oil supply from the Strait of Hormuz.