Oil prices edged lower as Iran signaled it could reopen the Strait of Hormuz within seven days if the United States eases military pressure and lifts its blockade on Iranian ports.

Brent and U.S. crude prices declined as prospects for increased Gulf oil supply and renewed U.S.-Iran diplomacy eased concerns over disruptions to the key shipping route. Reuters reported Wednesday that oil prices continued to drift lower amid those developments.

A senior Iranian official said Tehran could reopen the Strait of Hormuz within seven days if Washington formally indicates that it wants to resolve the conflict through diplomacy and the two sides agree on a timeline for the process.

According to the official, Iran delivered its proposal to the United States through mediators on September 16. Tehran intends to use the United Nations General Assembly meetings in New York to continue consultations with countries acting as intermediaries.

Iranian President Masoud Pezeshkian and Foreign Minister Abbas Araghchi are among the country's core delegation attending the 81st session of the United Nations General Assembly in New York.

The 81st UN General Assembly opened on September 8, while its general debate runs from September 22 to 28 at the United Nations headquarters.

Before the trip, Araghchi said Iran remained in what he described as a “state of war” following attacks by the United States and Israel.

He said Iran's participation in the General Assembly would be used to present the country's positions and defend what Tehran considers the rights and interests of the Iranian people.

Pezeshkian and Araghchi are also expected to hold bilateral meetings and consultations with foreign leaders and ministers during their stay in New York.

The United States allowed Iran's core delegation to attend the UN gathering but imposed restrictions on its movement. Members of the delegation are also prohibited from purchasing certain luxury and other goods while in the United States.

Diplomatic contacts between Washington and Tehran also resumed on the sidelines of the UN gathering.

Trump said Tuesday that Witkoff and Kushner held a three-hour meeting with an Iranian delegation and described the talks as productive. Reports said another meeting was expected.

The meeting does not involve a scheduled face-to-face discussion between Trump and Pezeshkian. A senior Iranian official earlier told Reuters that the two presidents were not expected to meet at the UN.

Iran has said reopening the Strait of Hormuz is among the issues that could be addressed as diplomatic efforts continue between the two sides.

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