Brent Oil Price Drops on Fresh Peace Talks with Iran
The Brent oil price took a hit on Monday after US President Trump announced fresh peace talks with Iran, sparking renewed optimism that a deal might be reached to de-escalate tensions in the Middle East.
Oil prices had been under pressure due to the latest planned attack on Iran being called off and a decision by OPEC+ to increase production by 188,000 barrels per day from September.
The price of Brent fell $7 on gap-lower opening, moving away from the $100 zone that was breached earlier this month. However, markets remain cautious as the US and Iran's negotiations are proving challenging, with control of the Hormuz Strait and Iran's nuclear program remaining key points of contention.
Technical analysis suggests that bears are eyeing near-term supports at $80.66/50 (July 28 low / 200DMA) and $80.00 (psychological), which could signal a continuation of the decline from July 23's peak of 101.97 if broken.