Oil Prices Drop Over 3% as US and Iran Signal Interest in a Diplomatic Deal

Crude fell sharply early Monday after reports that Washington and Tehran are both looking for a way to end the Middle East conflict. January Brent futures lost 2.99% to $110.04 a barrel, while December West Texas Intermediate dropped 3.4% to $100.55.

US and Iran Diplomacy Efforts

Secretary of State Marco Rubio said over the weekend that President Donald Trump has not made a final call and would rather settle the Iran war peacefully, though he believes the military has everything it needs if action becomes necessary. Iranian officials also suggested a deal remains possible after two days of Qatar-mediated talks, provided the demands are carried out in practice.

Midterm Elections and Renewed Strike Risk

Reports from The Wall Street Journal and The New York Times say the US is preparing for possible new military action after the Nov. 3 midterms, and both sides are said to be readying further strikes. Iran’s Supreme Leader Mojtaba Khamenei called on the armed forces to answer any threat with an immediate and geographically unrestricted response.