Oil Prices Gain as Hopes Fade for U.S.-Iran Talks

By Megan Cheah

Oil prices gained early Tuesday as optimism faded around potential talks between the U.S. and Iran at this week's United Nations meeting, while Asian equities rose, tracking gains on Wall Street.

World leaders are set to converge at the annual United Nations General Assembly in New York, where both President Trump and Iranian President Masoud Pezeshkian are scheduled to speak.

Trump is expected to meet with a number of Middle East leaders during his stay in New York. Multiple diplomats said Qatari officials plan to use the gathering to discuss the possibility of resuming talks. However, no one appears to be expecting major breakthroughs, given the lack of confirmation for formal talks with Iran during the event.

"Confirmation of direct talks between Washington and Tehran could place additional selling pressure on prices by improving expectations for regional supply," said FXTM head of market research Lukman Otunuga. "Conversely, Tehran has warned that renewed escalation would trigger a significant response, which could push crude prices higher."

U.N. Secretary-General Antonio Guterres has also played down the likelihood of talks in New York. "It is a complex set of problems that requires a serious dialogue between the U.S. and Iran, between Iran and the countries of the Gulf, including the mediators," he told reporters last week. "Probably it will take place somewhere else."

Front-month Brent crude oil futures were last up 0.7% at $101.06 a barrel, while front-month WTI was 0.4% higher at $96.19 a barrel, according to ICE data.

Asian equities broadly gained. South Korea's Kospi was up 1.5%, buoyed by gains in its chip heavyweights Samsung Electronics and SK Hynix. China's Shanghai Composite Index climbed 0.35%, while Hong Kong's Hang Seng added 0.4%. Taiwan's Taiex gained 1.4%. Japan's financial markets are closed Monday through Wednesday for public holidays.

Meanwhile, Asian currencies traded mixed versus the dollar. Strong export data and the earlier large fall in oil prices likely lent support to the Korean won, said OCBC strategists in a note. The dollar was down 1.0% at 1360.30 won. Other Asian currencies were little moved, with the dollar up 0.1% at 157.55 yen and the Australian dollar 0.15% lower at US$0.71, according to LSEG data.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

September 21, 2026 22:18 ET (02:18 GMT)