Oil prices slid to their lowest in more than a week on Monday as investors hoped for diplomatic progress on the Iran war due to this week's UN meeting.
Brent crude futures and US West Texas Intermediate crude touched their lowest since September 10 earlier on Monday. The Brent contract for November was at $102.09 a barrel at 0655 GMT, down $1.78, or 1.71%, after settling 0.91% lower on Friday, Reuters said.
The WTI October contract that is expiring on Tuesday fell $1.97, or 1.96%, to $98.33 a barrel following a 1.58% drop in the previous session.
"It seems that a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week," said Tim Waterer, chief market analyst at KCM Trade.
"Whether that hope proves to be warranted or not is another question. Time will tell."
WTI broke a key psychological support at $100 a barrel while some investors may have rolled over their positions in the October contract a day ahead of expiry to November, a Singapore-based broker said.
Iran and the US exchanged new threats on Sunday, although President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the United Nations General Assembly.
Iran has conveyed its conditions to mediators for re-engaging in negotiations aimed at ending the war with the US, Al Jazeera cited Iran's security chief, Mohsen Rezaei, as saying in an interview on Saturday.
On Monday, a spokesman for the Revolutionary Guards, Hossein Mohebbi, said Iran would use new weapons and target locations not previously attacked if the US launched a new offensive against it, according to the Fars news agency.
China has asked Iran to help rein in the Houthis after an appeal to Beijing following the attacks, according to three Iranian sources familiar with the matter.
