Oil prices fell on Wednesday after President Donald Trump said US and Iranian representatives had met for "very good" talks at the United Nations.
The international benchmark, Brent crude, and main US contract, West Texas Intermediate, dipped to $98.91 and $89.93 per barrel respectively in early Asian trade -- well below the symbolic $100 mark they have smashed repeatedly since the Middle Eat war broke out in February, AFP reported.
The three-hour meeting was "very good", "very productive" and "they have another one scheduled in the very near future", Trump told reporters as he met Ukrainian President Volodymyr Zelensky.
Trump's announcement came just hours after he delivered a bellicose address to the UN in which he said he faced a "big decision" on whether to make a deal with Iran or "annihilate the Islamic Republic and do it quickly".
Nearly seven months after US-Israeli strikes on Tehran triggered the conflict, the foes remain at an impasse, with Iran keeping the Strait of Hormuz closed and the United States persisting with a counter-blockade of Iranian ports.
"The three-hour US-Iran meeting matters because it shifts the market from pure escalation pricing toward a genuine diplomatic process, even if a final deal still looks distant," said Stephen Innes at Quintex Intel.
Trump has pledged that oil would come down "as soon as" the United States wins the war.
The dip in oil prices came as the world's biggest crude exporter Saudi Arabia reportedly rebooted operations along its East-West Pipeline -- a crucial oil export route shut down by the conflict rocking the Middle East.
Riyadh said this month that drones launched from Iraq had forced the closure of the pipeline, which it had increasingly used to bypass the lockdown of the Strait of Hormuz by Iran.
The kingdom is aiming to resume exports later this week, Bloomberg quoted a source as saying.
