Oil drops 6% as Iran signals openness to peace talks
USO•Oil fell about 6% on Monday after Iranian and Qatari officials held talks aimed at ending the war, raising hopes of reduced supply disruptions. Brent was down 6.0% at $106.65 a barrel and U.S. West Texas Intermediate fell 6.1% to $97.75.
1. Peace talks weigh on oil
Oil prices fell about 6% as talks between Iranian and Qatari officials lifted hopes for reduced Middle East supply disruptions. Iranian President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government “certain authorities” for peace talks, and said Tehran “will try to resolve the problem with dialogue.”
2. Stocks and supply risks
Brent crude futures fell $6.78 to $106.65 a barrel, while U.S. West Texas Intermediate declined $6.37 to $97.75. Sultan Al Jaber, chief executive of ADNOC, said the world had drained nearly 1 billion barrels from inventories since the war disrupted shipping through the Strait of Hormuz. Goldman Sachs said Brent could reach $140 in 2027 if Gulf oil output remains 3.5 million barrels per day below its 2025 average.
