International oil prices have dropped to their lowest level in two weeks as expectations rise for negotiations between the United States and Iran. This decline reflects hopes that disruptions in Middle Eastern oil supply may ease. However, U.S. Treasury yields increased as Federal Reserve officials warned about inflation risks.
According to the International Financial Center, on September 22, Brent crude was priced at $99.25 per barrel, down 1.09% from the previous trading day. President Donald Trump described talks with Iran as productive and mentioned the possibility of a deal following the midterm elections. Reports suggest that Iran may reopen the Strait of Hormuz if the U.S. eases military pressure, alongside news of Saudi Arabia resuming oil exports, contributing to the drop in prices.
While energy prices fell, concerns about inflation persisted in the bond market. The yield on U.S. 10-year Treasury bonds rose by 1 basis point to 4.96%. Susan Collins, President of the Boston Federal Reserve Bank, warned that inflation rates could remain above target for an extended period. Thomas Barkin, President of the Richmond Fed, also noted that recent price increases are not limited to a few items.
U.S. stock markets closed with little direction. The S&P 500 index remained nearly unchanged at 7764.6. Semiconductor stocks showed strength, but individual stock performances varied. In Europe, the Stoxx 600 index rose 0.13% to 642.78, buoyed by easing tensions in the Middle East and falling oil prices. The volatility index (VIX), which measures market uncertainty, decreased by 4.44% to 14.21.
In the foreign exchange market, the dollar showed slight strength. The dollar index rose 0.10% to 100.53. The euro fell 0.14% against the dollar to $1.1449, while the yen was priced at 157.39 yen per dollar. In New York, the won-dollar exchange rate was 1359.9 won, 1.75 won higher than the closing price in the Seoul foreign exchange market at 3:30 PM.
Market attention is shifting towards the upcoming U.S.-China summit, alongside the negotiations in the Middle East. The two countries are expected to discuss extending the trade truce, tariffs, and rare earth exports, although expectations for a comprehensive agreement are low. Whether supply concerns in the Middle East will be resolved and if concrete agreements will emerge from the U.S.-China talks are likely to determine the next direction for oil prices and financial markets.
* This article has been translated by AI.
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