Oil prices fall to lowest since Aug. 31 as Middle East supply fears ease

Global oil prices extended their decline Tuesday (local time), hitting their lowest levels since Aug. 31, as concerns over Middle East supply disruptions eased amid expectations that the United States would hold back from further military action against Iran.

Brent crude for January delivery fell 1.17 percent to $91.49 a barrel on the London ICE Futures Exchange, while West Texas Intermediate for December delivery dropped 0.93 percent to $86.04 a barrel on the New York Mercantile Exchange. Both closing prices were the lowest since Aug. 31.

Prices plunged more than $3 a barrel early in the session but recovered some of those losses after Iran denied reports of ongoing negotiations with the United States.

Mohsen Rezaei, secretary of Iran's Supreme National Security Council, told a Lebanese media outlet that claims the United States was holding talks with Iran and convening meetings in Qatar were "completely false."

Comments from the US side then signaled that further military operations were not imminent. Secretary of State Marco Rubio, speaking at a G7 foreign ministers' meeting in Paris, said large-scale military operations against Iran were not necessary at this time.

Rubio told reporters that President Donald Trump had "concluded that there is no need for large-scale combat operations at this time," adding that the administration was "achieving the same objectives through economic means."