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Brent Crude Falls More Than 6.5% to $105.55 on Iran-US Talks Hopes
Brent crude falls below $106 a barrel as Iran and US contacts to end the war continue.
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's foreign minister Abbas Araghchi said consultations through mediators were very intensive.
- IAG shares rose 4.2% in London, while United Airlines jumped 7% in New York.
Why it matters. The drop in oil prices sparked hopes of easing inflationary pressures in the global economy, though the article notes there is still a risk that Trump will escalate 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, after Tehran said contacts with Washington to end the eight-month war were continuing. Iranian foreign minister Abbas Araghchi said consultations through mediators were very intensive and that everything depended on Washington's political rationality. US vice-president JD Vance said there had been a number of good conversations with the Iranians.
Latest updates
Brent Crude Falls More Than 6.5% to $105.55 on Iran-US Talks Hopes
Brent crude, the international benchmark, dropped more than 6.5% to as low as $105.55 a barrel on Monday. The price was its lowest since October 16. Oil prices fell after Tehran revealed that contacts between Iran and the United States to end their eight-month war were continuing. Consultations are being held through mediators. The fall lifted airline shares and pushed down government borrowing costs. Physical crude flows from the Persian Gulf are also recovering.
Stocks Rally as Crude Oil Falls on US-Iran Hopes
US stock indexes rallied as crude oil prices fell on hopes for progress between the United States and Iran. The S&P 500 rose 0.74%, the Dow Jones Industrial Average gained 1.04% and the Nasdaq 100 added 0.74%. December E-mini S&P futures rose 0.72%, and December E-mini Nasdaq futures also gained 0.72%. The lower oil prices eased inflation concerns that had weighed on equities. The moves were reported by Barchart in its midday market coverage.
Crude Oil Falls Sharply as Rubio Signals Diplomacy With Iran
Crude oil prices fell sharply on Monday after U.S. Secretary of State Marco Rubio said President Donald Trump prefers not to use military force against Iran. Rubio said Washington would like to resolve the conflict diplomatically. Brent crude futures, the international benchmark, fell 6.4% to $106.20 a barrel as of 9:50 a.m. ET. U.S. West Texas Intermediate declined 6.5% to $97.35 a barrel. Both sides are reported to be pursuing diplomacy amid ongoing Mideast tensions ahead of the US midterm elections.
Oil falls about 3% as US and Iran explore diplomacy despite Hormuz attacks
Oil prices fell on Monday after news that both the United States and Iran are seeking diplomatic options to their conflict, CNBC reports. Brent crude for January delivery declined 3.31% to $109.67 a barrel. U.S. West Texas Intermediate futures for December fell 3.34% to $100.64 a barrel. The decline came despite renewed attacks in the Strait of Hormuz. The move reflects hopes that diplomacy could ease supply risks ahead of the US midterm elections.
Oil Prices Retreat Ahead of US Midterms Despite Renewed Hormuz Attacks
Oil prices declined ahead of Tuesday's US midterm elections, according to Seeking Alpha. Investors weighed renewed attacks on commercial vessels near the Strait of Hormuz against prospects for a diplomatic resolution to the conflict with Iran. Shipping threats in the strait continue to affect energy markets. OPEC+ output decisions are also being watched by traders.