Fuel / NEWS UPDATE
Oil Prices Plunge 7% as U.S. and Iran Signal Room for Diplomacy
Published · 1 min read
Oil prices dropped nearly 7% on Monday following signals from the U.S. and Iran that they would pursue diplomacy.
Brent crude fell to $105.60 per barrel, while WTI dropped to $96.92. Iranian President Masoud Pezeshkian stated that the Supreme Leader had granted the government authority to engage in peace talks, and Foreign Minister Abbas Araghchi said negotiators were working on a proposal to reopen the Strait of Hormuz. Secretary of State Marco Rubio indicated that President Trump prefers a diplomatic resolution, while Israeli Prime Minister Benjamin Netanyahu urged immediate military action. Analysts expect the geopolitical risk premium to decrease with a sustainable diplomatic solution.