Oil prices plunge about 7% as US and Iran signal diplomacy

· Oil & Gas · United States · Iran

Oil prices fell sharply on Monday after Washington and Tehran both signaled willingness to pursue diplomacy, eroding part of the war premium that had pushed crude higher through October. Brent traded at $105.60 a barrel, down $7.85, while WTI dropped $7.20 to $96.92. Iranian President Masoud Pezeshkian said on Monday that Tehran would give diplomacy a chance. Losses began during Asian trade as a draft proposal for a potential end to the US-Iran war circulated after Iranian negotiators left Qatar, an official briefed on the talks told Reuters. The move unwinds some of the gains that conflict risk had added to crude benchmarks.

Why it matters：The war-risk premium that has dominated oil pricing is now being partly priced out, shifting the calculus for traders, refiners and producers who had positioned for prolonged supply disruption.

Key points

  • Brent fell $7.85 to $105.60 a barrel; WTI dropped $7.20 to $96.92.
  • A draft proposal to end the US-Iran war circulated after Iranian negotiators left Qatar.

Sources (original reporting)

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