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Brent crude falls below $106 as draft proposal to end US-Iran war circulates
Brent crude falls below $106 a barrel as draft proposal to end the US-Iran war circulates.
Key points
- Brent crude dropped more than 6.5% to as low as $105.55 a barrel on Monday, its lowest since 16 October.
- Iran said contacts with the US to end their eight-month war were continuing, with consultations through mediators.
- IAG shares rose 4.2% in London, while United Airlines jumped 7% in New York.
Why it matters. The oil price drop raised hopes of a break in the inflationary pressures gripping the global economy, though the source says there is still a risk Trump could make one last push after the midterms.
Brent crude fell below $106 a barrel on Monday, dropping more than 6.5% to as low as $105.55, its lowest since 16 October. Iranian foreign minister Abbas Araghchi said consultations with the US through mediators were very intensive and that everything depended on Washington's political rationality, after Tehran confirmed contacts were continuing. Shares in IAG rose 4.2% in London and United Airlines jumped 7% in New York, while the 10-year UK bond yield fell 10 basis points to its lowest since 22 September.
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Brent crude falls below $106 as draft proposal to end US-Iran war circulates
Brent crude, the international benchmark, dropped more than 6.5% to as low as $105.55 a barrel on Monday. The price was the lowest since October 16. Oil fell after Tehran said contacts between Iran and the United States to end their eight-month war were continuing. Consultations are being held through mediators, and a draft proposal to end the conflict has been circulated. Airline shares rose on the news, and government borrowing costs fell.