Oil prices fluctuated throughout Tuesday as a succession of headlines – from President Donald Trump’s United Nations remarks to diplomatic talks with Iran and Ukraine, and reports of a Saudi pipeline restart – pushed markets in opposite directions.
Trump’s UN Address and Diplomatic Moves
During his speech to the U.N. General Assembly, Trump told world leaders, “I believe we will make a deal right after the election because it does not make sense for them not to.” Markets interpreted the comment as indicating no agreement before Nov. 3, yet both U.S. crude and Brent rose overall for the day before easing.
Later, after a meeting with Ukrainian President Volodymyr Zelenskyy, Trump announced a “very good” three‑hour discussion with Iran’s representatives, noting that his top foreign‑policy negotiator Steve Witkoff and son‑in‑law Jared Kushner were the envoys. The perceived progress nudged oil prices down roughly 1%.
Separate reports suggested Iran might reopen the Strait of Hormuz within days if the United States took steps to ease pressure. NBC News had not confirmed the claim, and Iran’s semi‑official news agency Fars called the reports “unreliable and untrue,” without naming sources.
Saudi Pipeline Reopens Amid Hormuz Tensions
Saudi Arabia’s east‑west pipeline, shut after “multiple attacks” on Sept. 11 amid fighting with Iran‑backed Houthi rebels, was reported to be back in operation. Reuters said the line had already restarted and could resume exports from a Red Sea port later that day, citing three informed sources. Bloomberg added that Saudi Aramco was conducting tests with the aim of fully restarting the pipeline within the week.
Secretary of State Marco Rubio told NBC News there was nothing scheduled with Iran at that point, but the United States remained “open to something like that.” He also emphasized that recent oil price gains were largely driven by the pipeline attack, creating expectations of reduced Saudi supply.
MarineTraffic data show that vessel traffic through the Strait of Hormuz has ground to a near halt since the Feb. 28 U.S.–Israel strike on Iran, with fewer than 20 ships per day over the past week, underscoring the chokepoint’s vulnerability.
Trump is also slated to meet Gulf Cooperation Council leaders on Tuesday night at the UN assembly, adding another diplomatic front to the energy discussion.
Market Reaction and Outlook
Both oil benchmarks have climbed more than 60% since the start of the year. Retail gasoline reached $4.47 per gallon on Tuesday, about 50% higher than at the onset of the Iran‑related conflict, while diesel surged, pushing the national average to a record $6.52 per gallon – an 82% year‑to‑date increase, partly attributed to intensified aerial attacks between Russia and Ukraine.
Despite the rise, Trump claimed in his UN speech that oil prices would “plummet down, even lower than they were at the start of the conflict” once the war ends. Wall Street commodities analysts warned earlier in the month that prolonged conflict could lift crude to $120‑$150 per barrel.
Bond yields fell alongside oil. The 10‑year U.S. Treasury yield slipped to as low as 4.92% after reaching 5.04% a week earlier – its highest level since 2007. The 30‑year yield dropped to 5.25% after hitting 5.4% the previous week.
Equity markets showed little reaction. The S&P 500 closed flat, while the Nasdaq Composite rose 0.4% after a strong Monday driven by falling oil prices and bond yields.
Norman Pearlstine is the Executive Editor and Co-Founder at News Raise. With over two decades of experience across financial journalism, corporate governance, and market analysis, Norman leads the editorial direction and ensures strict adherence to journalistic accuracy and ethics.
