Oil Slides to One-Week Low as Traders Bet on Iran Diplomacy Despite Escalating Threats

Crude oil prices fell to a one-week low on September 21, 2026, as traders priced in hopes of a diplomatic resolution to the Middle East conflict despite fresh threats from Washington and Tehran. Brent crude traded at $102.05 per barrel, while West Texas Intermediate changed hands at $98.50. The slide came even as the U.S. president threatened Iran with economic collapse unless it agreed to a deal, and Tehran vowed a harsh response to any U.S. attack. Yemen's Houthis escalated offensives against Saudi Arabia, striking targets including Riyadh over the weekend. KCM Trade chief market analyst Tim Waterer said 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." In a positive supply signal, Saudi Arabia raised exports through the Strait of Hormuz to 2.9 million barrels per day over the past week, up from 700,000 bpd in August, according to JPMorgan.