Oil falls 2% to $90.54 after Iran offers to reopen Hormuz
Tuesday, September 22, 2026. West Texas Intermediate was at $90.54, down 2%, after Kyodo reported Iran offered to reopen the Strait of Hormuz; S&P 500 and Nasdaq-100 futures were little changed before President Trump's U.N. speech.
Key takeaways
Iran has offered to reopen the Strait of Hormuz within seven days if the United States takes initial steps toward easing military pressure, a senior Iranian official told Kyodo News, a report CNBC said it could not independently verify. West Texas Intermediate crude was at $90.54 a barrel at 7:13 a.m. Eastern, down 2% from the prior settle. Brent was at $98.81, down 1.5%. The U.S. oil fund USO was 1.7% lower in extended trading. Separately, Reuters reported that Saudi Arabia had restarted its East-West pipeline and could resume Red Sea exports from Yanbu later Tuesday, citing three sources briefed on the matter. President Donald Trump addresses the U.N. General Assembly this morning.
If the Kyodo report does not hold, USO and the energy sector fund XLE are the holdings that have already priced the cheaper barrel, and they are the ones that would have to reverse it. USO dropped 3.7% on Monday and closed lower for a fourth straight session, a slide that began last week when West Texas Intermediate broke below $100.
USO has fallen for four sessions from its Sept. 15 high
XLE fell 2.9% on Monday and was down another 1.1% in extended trading. U.S. equity index futures were not following crude lower. E-mini S&P 500 futures and Nasdaq-100 futures were little changed versus their prior settles, up less than 0.1%. Mini-Dow futures were up 0.2%. The S&P 500 fund SPY and the Nasdaq-100 fund QQQ were unchanged in extended trading.
There is no major Labor Department, Census Bureau, or Commerce Department release. The Richmond Fed manufacturing index is due at 10:00 a.m., consensus -1 against a prior reading of 4, and Fed Vice Chair Philip N. Jefferson speaks at 10:20 a.m. at the New York Fed's Treasury Market Conference.
Communications and technology led Monday
The S&P 500 closed Monday at 7,764.70, up 1.5%. The Nasdaq-100 rose 2.8% to 30,482.35, and QQQ finished higher for a fourth straight session. The Dow Jones Industrial Average gained 0.7%; the Russell 2000 added 0.5%.
The communications sector fund XLC jumped 3.6% on its heaviest volume in 20 sessions, with Meta Platforms up 11.3% after its Muse app-store run. Advanced Micro Devices, Meta, Intel, and Nvidia were QQQ's largest contributors. The technology sector fund XLK gained 2.8%, also on a four-session advance and its heaviest turnover in 20 sessions.
Communications led Monday; energy finished last
Alibaba and bitcoin inflows
Alibaba Group, the Chinese e-commerce and cloud company, unveiled a new AI chip and a long-dated cloud buildout overnight. Its U.S.-listed shares were up 3.3% in extended trading. Bitcoin was at $85,874, down 0.8%, after U.S. spot bitcoin ETFs took in a net $998.95 million on Monday, the ninth-largest daily inflow since the funds began trading in January 2024. The iShares Bitcoin Trust IBIT held $81.7 billion of assets as of Monday's close, the most among U.S. spot bitcoin funds; it led Monday's inflows with $381.37 million and was 0.8% lower in extended hours.
If Yanbu resumes exports later Tuesday, as the Reuters sources said it could, those barrels do not have to transit Hormuz, whether or not Iran's offer is real. If President Trump's speech undercuts the report, this morning's crude print is the one that has to unwind.
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Frequently asked questions
What made oil drop?
Kyodo News reported that a senior Iranian official said Iran would reopen the Strait of Hormuz within seven days if the United States took initial steps toward easing military pressure, a report CNBC said it could not independently verify.
Did stocks fall with crude?
No: S&P 500 and Nasdaq-100 futures were little changed, and the SPY and QQQ funds were unchanged in extended trading.
Why does Saudi Arabia matter here?
Reuters reported the kingdom restarted its East-West pipeline and could resume Red Sea exports from Yanbu later Tuesday, barrels that would not have to transit Hormuz whether or not Iran's offer is real.
What else is on the calendar?
President Trump addresses the U.N. General Assembly this morning, the Richmond Fed manufacturing index is due at 10:00 a.m., and Fed Vice Chair Philip Jefferson speaks at 10:20 a.m.
