Oil prices declined sharply Sept. 11 following a news report that U.S. President Donald Trump discussed easing sanctions on Iran in the hopes of securing a meeting with Iranian President Hassan Rouhani later in September.
U.S. West Texas Intermediate crude oil was down 2.46%, to $55.99 per barrel, as of 1:43 p.m. ET, while Brent crude had dropped 2.24%, to $60.98 per barrel.
The proposal to ease sanctions on Iran was floated during a Sept. 9 meeting at the White House, with then-National Security Adviser John Bolton opposing the move, Bloomberg News reported, citing three sources familiar with the matter. Trump announced Bolton's departure the following day due to policy disagreements.
Bolton's departure could signal a softer stance on Iran, according to a note from analysts at TD Securities led by Bart Melek, head of commodity strategy.
Treasury Secretary Steven Mnuchin backed the easing of sanctions in a bid to resume negotiations between the two countries, according to Bloomberg News. Iran's Rouhani has reportedly ruled out new talks unless sanctions on his country are removed.
Relations between the U.S. and Iran have worsened since May 2018, when Washington withdrew from the 2015 Iran nuclear pact, reinstating sanctions on Tehran that were suspended under the deal.
Tensions escalated again in June with an attack on a U.S. Navy drone and tankers near the Strait of Hormuz, which prompted the Trump administration to issue additional sanctions targeting Iran's supreme leader and senior military commanders.
Mnuchin said Sept. 10 that he and Secretary of State Mike Pompeo "are completely aligned on our maximum-pressure campaign" on Iran. Pompeo said Trump is prepared to meet with Rouhani with no preconditions.
Rouhani urged the U.S. to abandon "war-mongering policies and maximum pressure" and warned of further steps aimed at reducing Iran's commitments under the 2015 nuclear deal, according to a Sept. 11 statement posted on his website.
Separately, the U.S. Energy Information Administration earlier in the day lowered its crude oil price outlook through 2020, citing manufacturing indicators that may point to slowing global economic growth.
