Oil prices ease 3% on optimism for Qatari-led talks to end Iran war
USO•Oil prices fell more than 3% on Monday as Iranian and Qatari officials held a third straight day of talks aimed at ending the US-Israeli war on Iran. Brent was down 3.2% at $109.75 a barrel and US WTI fell 3.3% to $100.69.
1. Prices retreat
Brent crude futures fell $3.68, or 3.2%, to $109.75 a barrel, while US West Texas Intermediate crude dropped $3.43, or 3.3%, to $100.69. Brent had ended October at a six-month high.
2. Talks and risks
Iranian Foreign Minister Abbas Araqchi said the ongoing talks were for continued consultations with Qatari mediators, and that Tehran was prepared for “both defence and diplomacy.” Analysts said hopes for diplomatic progress and the absence of meaningful military escalation over the weekend eased immediate price pressure, though the market remained alert to renewed hostilities.
3. OPEC+ holds targets
OPEC+ kept December production targets steady on Sunday. Attacks on tankers transiting the Strait of Hormuz are driving up global energy and shipping costs, while Saudi Arabia increased crude exports in October compared with September despite attacks on its energy infrastructure.
