Oil Prices Plummet on Diplomatic Hopes Amid Ongoing Middle East Tensions

Oil prices hit a one-week low on Monday due to hopes of a diplomatic breakthrough in the US-Iran war, despite ongoing attacks by Yemen's Houthis.

The price of Brent crude futures fell to $101.71 a barrel, down $2.16 or 2.08%, while US West Texas Intermediate crude lost $2.15, or 2.14%, to $98.15 a barrel.

Analyst Tim Waterer said the 'degree of risk premium' was being removed from oil prices as investors hoped for a diplomatic path to de-escalate the war.

The WTI broke a key psychological support at $100 a barrel, and some investors may have rolled over their positions in the October contract ahead of expiry to November.