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Oil Prices Bounce Back Following Reports of U.S. Strikes on Iran
Oil prices bounce back after reports of U.S. strikes on Iran, though the article describes a fall on Iran peace hopes.
Key points
- Brent crude dropped more than 6.5% to as low as $105.55 a barrel on Monday, its lowest since 16 October.
- Qatari officials tried to negotiate release of more than $6bn (£4.5bn) in Iranian assets over the weekend.
- Trump told Iowa voters on Sunday that Iran would receive 'the hammer' unless there was progress.
Why it matters. The drop in oil prices sparked hopes of easing inflationary pressures in the global economy, though IG's Chris Beauchamp warned there is still a risk Trump will try one last throw after the midterms.
Brent crude fell more than 6.5% to as low as $105.55 a barrel on Monday, its lowest since 16 October, as hopes grew of a deal to end the Iran war. Iran's foreign minister Abbas Araghchi said mediated consultations with Washington were very intensive, while US vice-president JD Vance cited 'a number of good conversations'. IAG, British Airways' parent, rose 4.2% in London and United Airlines jumped 7% in New York.
Latest updates
Oil Prices Bounce Back Following Reports of U.S. Strikes on Iran
The oil price has fallen to its lowest level in more two weeks amid new hopes of a breakthrough to end the Iran war. Brent crude, the international benchmark, dropped by more than 6.5% to as low as $105.55 a barrel on Monday, the lowest since 16 October, sending shares in airline companies higher and pushing down government borrowing costs. Oil prices fell after Tehran revealed that contacts between Iran and the US to end their eight-month war were continuing. “Consultations through mediators are very intensive. We have presented our conditions and proposals and everything depends on the political rationality of Washington,” the Iranian foreign minister, Abbas Araghchi, said, according to the state media outlet IRNA. Over the weekend, Qatari officials tried to negotiate the release of more than $6bn (£4.5bn) in Iranian assets , so that Tehran might allow the strait of Hormuz to reopen. On Monday, US vice-president JD Vance reported that there had been “a number of good conversations with the Iranians” and that he was feeling good about the prospects of a “negotiated settlement”. Vance sent a letter to Iran’s security chief, Mohsen Rezaei, last week but the White House has offered few details about the contents of that correspondence. Donald Trump had earlier taken a belligerent tone, telling voters in Iowa on Sunday that Iran would receive “the hammer” unless there was progr.