Oil wavered as Saudi Arabia sought to resume flows on a vital pipeline, while traders monitored the annual gathering of diplomats at the UN for clues on progress toward reopening the Strait of Hormuz.

Brent crude briefly fell below $98 per barrel during the day, on hopes of peace talks between Iran and the US, and Saudi Arabia reopening the East-West pipeline. But prices later trimmed their losses after US President Donald Trump's belligerent speech at the UN General Assembly in New York on Tuesday, and Brent was at $99.66 per barrel at the time of going to press.

ET Bureau

The kingdom was in the early stages of starting up the East-West oil pipeline that was halted following drone attacks earlier this month. The country is aiming to restore exports via the line later this week, offering some relief to a market that's been short of supply over the last few weeks. While millions of barrels a day are crossing Hormuz, flows remain below pre-war levels.

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Meanwhile, traders parsed signs of potential diplomatic momentum to ease the impasse between the US and Iran over management of Hormuz.