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Crude Oil Falls Sharply as Rubio Signals Diplomacy With Iran
Crude oil prices fall sharply after Rubio signals US preference for diplomacy with Iran over military force.
Key points
- Brent crude futures 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 per barrel.
- Iran's Foreign Minister Abbas Araghchi said mediators are discussing Iran's proposal made at the United Nations General Assembly in
Why it matters. The oil market had priced in the risk of a major military escalation after the U.S. elections, so signs of diplomacy may ease that risk premium on crude prices.
Brent crude futures fell 6.4% to $106.20 a barrel by 9:50 a.m. ET on Monday, and U.S. West Texas Intermediate dropped 6.5% to $97.35 per barrel, after U.S. Secretary of State Marco Rubio said President Donald Trump prefers not to use military force against Iran. Rubio told reporters over the weekend that the president "hasn't made a decision" and that the U.S. would prefer to act peacefully.
Latest updates
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.