Oil prices fall as U.S. and Iran are said to discuss a phased agreement

Reports suggest that U.S. and Iranian negotiators are discussing a phased agreement that includes Iran reopening the Strait of Hormuz, sending oil prices lower. International benchmark Brent crude fell back to around $106 a barrel, after gaining more than 7% over the previous two trading sessions; U.S. West Texas Intermediate crude dropped below $94. According to people familiar with the matter, the two countries, having failed to reach a similar deal in recent months, are seeking a breakthrough in negotiations during the United Nations General Assembly. As the U.S.-Iran conflict enters the tail end of its seventh month, crude oil has once again seen sharp swings this week. Mixed signals on the war's outlook, the prospect of restored Middle Eastern crude flows, and market speculation that the U.S. may ban diesel exports have combined to roil oil prices. Brent crude is still up more than 70% year to date, adding to inflationary pressure. Haris Khurshid, chief investment officer at Karobaar Capital LP, said: "Absent any major developments, Brent is likely to stay in the $100 to $110 range. A credible phased agreement could quickly push prices back below $100; while another disruption to exports or the logistics chain could send prices back to $120." Brent crude for November delivery fell 0.5% to $106.10 a barrel. WTI crude for November delivery fell 0.7% to $93.91 a barrel.