Oil drops over 4% on hopes of progress in talks to end US-Iran war
USO•Oil fell more than 4% on Monday as talks between Iranian and Qatari officials raised hopes of easing Middle East supply disruptions. Brent was down 4.2% at $108.64 a barrel and U.S. West Texas Intermediate fell 4.2% to $99.71.
1. Prices fall on diplomacy hopes
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. Iranian negotiators left talks with Qatari mediators, and a draft proposal was being circulated, with a follow-up meeting possible, an official briefed on the talks said.
2. Supply risks remain
Brent crude futures fell $4.79, or 4.2%, to $108.64 a barrel, while US West Texas Intermediate fell $4.41, or 4.2%, to $99.71. The war has depleted oil stocks, with ADNOC's CEO saying the world has drawn nearly 1 billion barrels from inventories since shipping through the Strait of Hormuz was disrupted. Goldman Sachs raised its oil price forecasts and said Brent could reach $140 in 2027 if Gulf oil output remains 3.5 million barrels per day below its 2025 average.
