Oil Prices Plummet as Investors Bet on Diplomatic Progress in US-Iran Conflict

Oil prices slid on Monday to their lowest in over a week as investors hoped for diplomatic progress in the US-Iran war following this week's UN meeting. The Brent crude futures contract dropped $1.78, or 1.71%, to $102.09 a barrel, while the WTI October contract fell $1.97, or 1.96%, to $98.33 a barrel.

Analysts pointed out that investors are removing a 'risk premium' from oil prices as they anticipate a diplomatic solution to the conflict, according to Tim Waterer, chief market analyst at KCM Trade. However, whether this hope is warranted remains to be seen.

The Iran-US tensions remain high, with Iran's security chief, Mohsen Rezaei, stating that the country has conveyed its conditions for re-engaging in negotiations with the US. Meanwhile, Yemen's Houthis launched attacks on Saudi Arabia over the weekend, further escalating the situation.