Oil Prices Drop as Diplomatic Engagement Between US and Iran Increases Hopes for Conflict Resolution

Crude oil benchmarks dropped by over 2% on Monday after diplomatic engagement between Washington and Tehran increased hopes for a resolution to their conflict.

The price decline continued a three-session losing streak, with Brent futures settling down $2.16, or 2.08%, at $101.71 per barrel, while US West Texas Intermediate lost $2.15, or 2.14%, to close at $98.15, slipping below the $100 threshold.

The optimism surrounding direct talks between President Donald Trump and Iranian President Masoud Pezeshkian has led investors to shed some of the risk premium priced into crude due to Middle Eastern supply disruptions.