Oil prices dropped as diplomatic discussions between the US and Iran began, easing immediate fears of military escalation in the Strait of Hormuz. While both sides paused potential strikes, ongoing Houthi attacks in the Red Sea continue to disrupt shipping routes, maintaining concerns over energy supply stability. Gulf states are advancing plans to bypass the Hormuz bottleneck through new pipeline projects and expanded storage infrastructure. Israeli Prime Minister Benjamin Netanyahu confirmed his attendance at the upcoming UN General Assembly, reinforcing international diplomatic activity.
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