Oil drops more than 4% on talks aimed at ending US-Iran war
USO•Oil prices fell more than 4% as talks between Iranian and Qatari officials raised hopes that Middle East supply disruptions could ease. Brent was down 4.2% at $108.66 a barrel and U.S. West Texas Intermediate fell 4.1% to $99.83.
1. Oil prices fall
Oil fell more than 4% on Monday as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease. Brent crude futures were down $4.77, or 4.2%, at $108.66 a barrel, while West Texas Intermediate fell $4.29, or 4.1%, to $99.83.
2. Talks and supply risks
Iranian negotiators held days of talks with Qatari mediators, and a draft proposal was circulating, with a follow-up meeting possible, an official briefed on the talks said. The discussions followed an increase in attacks on oil tankers passing through the Strait of Hormuz. ADNOC's chief executive said the world had drained nearly 1 billion barrels from inventories since the war disrupted shipping through the strait.
3. Forecasts point higher
Goldman Sachs raised its oil price forecasts, citing elevated supply risks, and said Brent could reach $140 in 2027 if Gulf oil output remains 3.5 million barrels per day below its 2025 average.
