Oil prices dip as Iran and U.S. discuss reopening Strait of Hormuz amid regional sanctions

Crude oil prices slipped on Friday following reports that Iranian and U.S. negotiators met on the sidelines of a United Nations session to discuss a phased reopening of the Strait of Hormuz. The talks, described by Iranian foreign minister Abbas Araghchi as a proposal to begin negotiations within seven days, could lead to a removal of the naval blockade that has constrained shipping in the Persian Gulf.

At the same time, Iraq’s civil aviation authority ordered the suspension of flights from Iranian carriers at Erbil and Sulaimaniya airports, extending a ban that now covers all Iraqi airports. The decision aligns Iraq with several other Middle Eastern and European states that have halted Iranian airline operations in response to U.S. secondary sanctions targeting firms that support Iran’s designated activities.

U.S. officials have warned that any assistance China provides to Iran, including intelligence or equipment, would be deemed unacceptable. President Donald Trump reiterated this stance in a conversation with Chinese President Xi Jinping, according to U.S. ambassador to China David Perdue.

Iranian deputy foreign minister Kazem Gharibabadi condemned Israeli Prime Minister Benjamin Netanyahu’s speech at the UN General Assembly, calling it a “publicity stunt” and noting that the walkout of 77 delegations sent a stronger message.

Separately, New York police arrested 103 demonstrators during anti-Israel protests at the UN, including several public figures, who were later released with summonses for disorderly conduct.