Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Dives 4% As Gulf Countries Prepare To Talk With Iran

• Gulf states plan to meet with Iran to discuss the Strait of Hormuz, which remains effectively blocked with traffic well below pre-war levels despite some vessels getting through with U.S. military assistance
• Iran gained negotiating leverage after Houthi forces captured a key Red Sea port, enabling potential control over the Bab-el-Mandeb Strait, another critical oil export route
• WTI oil is testing the key $100 psychological level with support at $97.50-$98.00, while Brent crude fell below $105 with next support at $101.50-$102.00

Market Summary: Energy Commodities React to Iran-Gulf States Negotiation Reports

Key Price Movements

Oil prices declined sharply on September 11, 2026, with WTI crude falling approximately 4% to approach the $100.00 psychological level, while Brent crude dropped below $105.00. Natural gas traded at $2.82, down as traders anticipated reduced demand.

Primary Catalyst: Geopolitical Developments

The oil selloff was triggered by reports that Gulf states are preparing to negotiate with Iran regarding the Strait of Hormuz, which remains effectively blocked by Iran. While some vessels navigate the strait with transponders off and U.S. military assistance, traffic remains significantly below pre-war levels.

The geopolitical situation intensified after Houthis achieved a major victory in Yemen, capturing a key Red Sea port and potentially gaining control over the Bab-el-Mandeb Strait—another critical oil export route. This development strengthens Iran's negotiating position, though U.S. participation in talks remains uncertain.

Technical Levels and Outlook

WTI Oil: Support levels at $97.50-$98.00 and $93.00-$93.50. Resistance requires a settlement above $103.00 to regain momentum.

Brent Oil: Support at $101.50-$102.00 and $100.00. Upside resistance at $108.50-$109.00 and $112.50-$113.00.

Natural Gas: Testing support at $2.75-$2.80, with next support at $2.60-$2.65. EIA reported a +40 Bcf storage increase from the previous week. Cooler weather expected in late September should reduce demand further.

Market Implications

The price decline represents profit-taking after a strong rally, with traders viewing potential Iran-Gulf negotiations as reducing immediate supply disruption risks, despite ongoing blockade conditions.