Crude oil prices fall for sixth session; PL Capital explains what could happen next
According to Ashish Rajodiya, Head of Commodities at PL Capital, the latest decline follows reports that a senior Iranian official has submitted a diplomatic proposal to Washington through mediators.
- Sep 23, 2026,
- Updated Sep 23, 2026 4:46 PM IST
Crude oil prices extended their decline for the sixth straight session on Wednesday, with WTI crude prices falling around 1.5% to near $89.12 a barrel and Brent crude declining roughly 1% to $98.29 as easing concerns around the Strait of Hormuz reduced some of the risk premium built into prices during the standoff.
According to Ashish Rajodiya, Head of Commodities at PL Capital, the latest decline follows reports that a senior Iranian official has submitted a diplomatic proposal to Washington through mediators. Under the proposal, Iran has offered to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports.
The supply-side picture has also improved, with Saudi Arabia's Aramco restarting its East-West pipeline, although at reduced capacity. Red Sea crude exports have also resumed from Yanbu, while crude shipments through the Strait of Hormuz averaged 2.9 million barrels per day between September 13 and 18, sharply higher than around 700,000 barrels per day in August, Rajodiya said.
However, the recovery in crude flows remains fragile. Only two commercial vessels transited the Strait on Monday, compared with around 125 vessels a day before the conflict, highlighting the gap between improving headlines and a full return to normal shipping activity.
"The recovery is still fragile," Rajodiya said, noting that actual traffic through the Strait of Hormuz remains well below the pre-conflict levels despite the improvement in crude shipments.
The outlook for crude prices will now hinge on whether Iran's seven-day reopening proposal leads to a broader diplomatic agreement. A successful deal could extend the recent decline in oil prices, while a breakdown in talks or a fresh incident around a key shipping chokepoint could quickly bring the risk premium back into crude, according to Rajodiya.
With Brent crude still near the $100-a-barrel mark, higher diesel prices are also continuing to put pressure on consumers. Meanwhile, the US Federal Reserve's hawkish stance following last week's rate hike adds another factor for markets to track, Rajodiya said.
Crude oil prices extended their decline for the sixth straight session on Wednesday, with WTI crude prices falling around 1.5% to near $89.12 a barrel and Brent crude declining roughly 1% to $98.29 as easing concerns around the Strait of Hormuz reduced some of the risk premium built into prices during the standoff.
According to Ashish Rajodiya, Head of Commodities at PL Capital, the latest decline follows reports that a senior Iranian official has submitted a diplomatic proposal to Washington through mediators. Under the proposal, Iran has offered to reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports.
The supply-side picture has also improved, with Saudi Arabia's Aramco restarting its East-West pipeline, although at reduced capacity. Red Sea crude exports have also resumed from Yanbu, while crude shipments through the Strait of Hormuz averaged 2.9 million barrels per day between September 13 and 18, sharply higher than around 700,000 barrels per day in August, Rajodiya said.
However, the recovery in crude flows remains fragile. Only two commercial vessels transited the Strait on Monday, compared with around 125 vessels a day before the conflict, highlighting the gap between improving headlines and a full return to normal shipping activity.
"The recovery is still fragile," Rajodiya said, noting that actual traffic through the Strait of Hormuz remains well below the pre-conflict levels despite the improvement in crude shipments.
The outlook for crude prices will now hinge on whether Iran's seven-day reopening proposal leads to a broader diplomatic agreement. A successful deal could extend the recent decline in oil prices, while a breakdown in talks or a fresh incident around a key shipping chokepoint could quickly bring the risk premium back into crude, according to Rajodiya.
With Brent crude still near the $100-a-barrel mark, higher diesel prices are also continuing to put pressure on consumers. Meanwhile, the US Federal Reserve's hawkish stance following last week's rate hike adds another factor for markets to track, Rajodiya said.