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Oil markets will be watching US-Iran body language at UN

A crude oil tanker navigates the Suez Canal.
Dana Smillie | Bloomberg | Getty Images

The oil market will be watching President Barack Obama and Iranian President Hassan Rouhani Tuesday for signs the thawing in relations between the two countries could lead to meaningful negotiations about Iran's nuclear program.

"With the Iranians putting on a charm offensive, I think a lot of oil traders will be watching to see if there's anything new that comes out of what happens there," said Addison Armstrong of Tradition Energy. "I think the rhetoric has to be backed up by some confidence building measures, and we'll see if any of those are on offer. The ball is in Iran's court. They're the ones that have been squeezed and they're the ones that have to show they're willing to make some concessions."

Both presidents speak at the United Nations General Assembly Tuesday, just days after Rouhani said he would be willing to negotiate with the West about the program and that Iran has no intention of pursuing a nuclear bomb. Iran has maintained that its nuclear program is not for weapons making.