Oil prices plunged around 6% on Monday as diplomatic efforts between Iran and Qatar to end the US-Israeli war raised hopes of easing disruptions to Middle Eastern supplies.
Brent crude futures fell $6.78, or 6%, to $106.65 per barrel, while US West Texas Intermediate (WTI) declined $6.37, or 6.1%, to $97.75.
The decline followed Iranian President Masoud Pezeshkian’s remarks that Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain powers to pursue peace negotiations. Pezeshkian said Iran would seek a diplomatic solution through dialogue.
According to media reports, Iranian negotiators had held several days of talks with Qatari mediators, with a draft proposal under circulation and a possible follow-up meeting.
However, Goldman Sachs warned that persistent supply risks could push Brent crude to $140 per barrel in 2027 if Gulf oil production remains significantly below its 2025 average.
Iran Signals Flexibility on Hormuz Reopening, Sets Two-Day Timeline
