Oil Prices Slide as Diplomatic Hopes Rise Amid Ongoing US-Iran Conflict

Oil prices slid to their lowest in over a week on Monday as investors hoped for diplomatic progress on the US-Iran war following this week's UN meeting. The Brent crude contract for November 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.

Tim Waterer, chief market analyst at KCM Trade, said that 'a degree of risk premium is being removed from oil prices on hopes that a diplomatic path to de-escalate the US-Iran war may arrive this week.' However, he noted that whether these hopes prove warranted or not remains uncertain.

The tensions in the Middle East remained elevated as Yemen's Houthis attacked 'sensitive' sites in Riyadh and an Aramco facility in Yanbu. China has asked Iran to help rein in the Houthis after an appeal from Saudi Arabia, according to Iranian sources.