Oil Prices Plunge on Hopes of US-Iran Diplomacy and Saudi Supply Recovery

Oil prices plummeted on Monday as markets adjusted to the possibility of diplomatic talks between Washington and Tehran, and signs that Saudi Arabia was restoring crude shipments after attacks disrupted key export routes.

The market snapshot showed WTI crude at $95.29 a barrel, down $5.01 or 5.00%, while Brent crude was at $99.96 a barrel, down $3.91 or 3.76%. Murban crude declined to $111.20 a barrel, down $6.72 or 5.70%.

The drop in prices came as investors looked for signs that the US-Iran war could move towards negotiations during the United Nations General Assembly in New York this week. Reports suggested that there was a possibility of contact between US President Donald Trump and Iranian President Masoud Pezeshkian, with Trump stating that Iran wants a deal.

Saudi Arabia's East-West pipeline, which was damaged in drone attacks earlier this month, has been restored, allowing the kingdom to move more barrels while repairing the damaged pipeline. This recovery is seen as a temporary fix and not a return to normal supply chain operations.