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Oil drops over 3% on hopes of US-Iran diplomacy
Global oil prices fell more than three per cent on Monday as renewed hopes of diplomatic progress between the United States and Iran eased fears of further military escalation in the Middle East. Brent crude dropped 3.2 per cent to $109.75 a barrel in early trading, while US West Texas Intermediate fell 3.3 per cent to $100.69. The decline followed reports of possible progress in indirect talks between Washington and Tehran, and the absence of significant military action over the weekend also eased pressure on the market. US President Donald Trump told reporters that Iran wants to make a deal and that it could happen. Iran's foreign minister, Abbas Araghchi, said an agreement is possible if Washington demonstrates goodwill, and Tehran expects sanctions to be lifted. Analysts warn that the risk premium will not fully unwind on diplomacy alone while the conflict continues.
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Oil drops over 3% on hopes of US-Iran diplomacy
Global oil prices fell more than three per cent on Monday as renewed hopes of diplomatic progress between the United States and Iran eased fears of further military escalation in the Middle East. Brent crude dropped 3.2 per cent to $109.75 a barrel in early trading, while US West Texas Intermediate fell 3.3 per cent to $100.69. The decline followed reports of possible progress in indirect talks between Washington and Tehran, and the absence of significant military action over the weekend also eased pressure on the market. US President Donald Trump told reporters that Iran wants to make a deal and that it could happen. Iran's foreign minister, Abbas Araghchi, said an agreement is possible if Washington demonstrates goodwill, and Tehran expects sanctions to be lifted. Analysts warn that the risk premium will not fully unwind on diplomacy alone while the conflict continues.