NEW YORK: Oil prices eased on Monday to their lowest level in 12 days, as investors hoped for diplomatic progress on the Iran war due to this week`s United Nations meeting and eyed a partial recovery in shipments from Saudi Arabia.

The Brent crude futures November contract fell to its lowest since September 9 at $99.51 a barrel at 1:16 p.m. ET (1716 GMT), down $4.36, or 4.2pc.

The WTI October contract that is expiring on Tuesday fell $5.30, or 5.28pc, to $95 a barrel.

The November contract stood at $91.68.

On Sunday, Iran and the US exchanged new threats, although President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the United Nations General Assembly.

Investors are pinningtheir hopes on a breakthrough in peace talks this week, said Tamas Varga, analyst at PVM Oil Associates.

`Just a couple days ago that would have seemed like a very far-flung idea,` said Bob Yawger, director of energy futures at Mizuho. `It`s a move in the right direction.` Iran has conveyed its conditions to mediators for reengaging in negotiations, Al Jazeera reported, citing Iran`s security chief, Mohsen Rezaei.

China has asked Iran to help rein in the Houthis after an appeal to Beijing by Saudi Arabia following the attacks, according to three Iranian sources familiar with the matter.

The attacks by the Houthis on Aramco`s East-West pipeline have prompted the firm to increase exports through the Strait of Hormuz this month and next after halting some shipments via Yanbu.-Reuters