Benchmark Brent crude for January delivery slipped 3.91% to trade at $109.00 a barrel, while December WTI futures fell 4.1% to $99.85 per barrel. Diplomatic overtures emerged after weekend statements from U.S. officials and Iranian negotiators who indicated a deal is achievable if specific demands are implemented. However, broader tensions persist as Iranian Supreme Leader Mojtaba Khamenei ordered his military to ready an immediate, unrestricted response to any threat.
Key points
Energy prices declined sharply as Washington and Tehran explored diplomatic options to de…: Energy prices declined sharply as Washington and Tehran explored diplomatic options to de-escalate Middle East hostilities.
The United States maintains full military capability to act if negotiations fail, accordi…: The United States maintains full military capability to act if negotiations fail, according to Secretary Marco Rubio.
Supreme Leader Mojtaba Khamenei placed Iranian armed forces on alert for an unrestricted…: Supreme Leader Mojtaba Khamenei placed Iranian armed forces on alert for an unrestricted response against potential threats.
Sources checked by our analysis pipeline: 1
Oil prices fell sharply early on Monday amid reports that both the U.S. and Iran are seeking diplomatic options to bring an end to the Middle East conflict.
Futures for international benchmark Brent crude for January delivery fell 3.91% to $109.00 a barrel as of 4:07 a.m. ET. U.S. West Texas Intermediate futures for December declined 4.1% to $99.85 per barrel.
U.S. Secretary of State Marco Rubio said that President Donald Trump prefers not to use military force and would like to resolve the Iranian war "diplomatically."
Trump "hasn't made a decision...what the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful. But we would prefer to do it peacefully," Rubio said, speaking to reporters over the weekend.
Iranian authorities also signaled that a deal is still possible, following two days of talks mediated by Qatar, as long as demands are implemented tangibly, according to Al Jazeera.
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