Oil drops from near six-month highs on hopes Iran war hostilities will ease
USO•Oil prices fell on Monday after rising to near six-month highs last week, as hopes of easing US-Iran hostilities offset concerns about attacks on Saudi Arabia and supply disruptions. Brent had gained 6% last week, while WTI rose 2.3%.
1. Prices retreat
Oil prices fell on Monday after surging last week to near six-month highs. At 0426 GMT, WTI was down $2.23, or 2.16%, at $101.04 a barrel, and Brent was down $2.21, or 1.89%, at $114.51.
2. Tensions and supply risks
Qatari mediators traveled to Tehran on Sunday in an effort to de-escalate regional tensions in coordination with the United States, an official briefed on the situation said. Attacks continued over the weekend: the Iran-backed Houthis said they struck an airport and oil facilities in Saudi Arabia, which said it had intercepted more missiles and drones.
3. Storage plans and outlook
Saudi Aramco will start storing crude in Singapore in the second half of 2027 to strengthen its regional supply chain, the energy ministers of Saudi Arabia and Singapore said. The head of the International Energy Agency said he does not expect energy markets in 2027 to return to where they were before the Iran war.
