Reports of potential negotiations between Iran and the US and the possibility of the Strait of Hormuz reopening pushed oil prices lower earlier in the session, but Iranian sources are now denying the claims via Fars News. Kyodo and Reuters reported earlier, citing Iranian sources, that Tehran could be prepared to reopen the Strait of Hormuz within seven days if the US reduced military pressure and lifted its blockade of Iranian ports. The reports triggered extended the decline in oil prices as markets priced in the possibility of a gradual normalization of crude flows.However, Iranian sources cited by Fars News dismissed the reports as inaccurate and said they did not reflect Tehran's position. The conflicting reports come as markets remain highly sensitive to any indication of progress toward a potential US-Iran de-escalation ahead of the UN General Assembly. Following the Fars News report, oil prices erased some of the earlier losses but the momentum hasn't been that strong. This might be a sign that the market is still assigning a higher chance of de-escalation given the constraints that Trump is facing amid munitions shortfalls, elevated yields, rate hikes, sinking political approval and Gulf governments pushing for an end to the conflict. This article was written by Giuseppe Dellamotta at investinglive.com.