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Oil prices fell on Tuesday, as the outcome of talks over a U.S. debt deal remained uncertain and Iran unveiled a proposal to achieve a breakthrough in a decade-old standoff over its nuclear program, sending U.S. crude to a 3-month low.
Leaders from the U.S. Senate and House stressed they were working to reach a deal before a Thursday deadline to avoid a default on U.S. government borrowing.
Republicans in the U.S. House of Representatives hope to pass their own version of legislation to reopen the federal government that would differ from a plan emerging on Tuesday from Senate negotiations, Republican lawmakers and aides said.
Iranian Deputy Foreign Minister Abbas Araqchi said described a negotiation meeting on Tuesday in Geneva as "good'' and said he thought the proposal "has the capacity to make a breakthrough.'' Analysts noted that it might still take months, if not years, before free-flowing Iranian oil would be back on the world market.
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