Oil Prices Slide as Diplomatic Hopes Rise Amid US-Iran Conflict
Oil prices dropped to their lowest in more than a week on Monday amid hopes that diplomacy in the US-Iran conflict will gain momentum this week, particularly with President Donald Trump expressing willingness to meet Iranian President Masoud Pezeshkian at the United Nations General Assembly.
Brent crude futures fell to $101.71 a barrel, down 2.08% from Friday's close, while US West Texas Intermediate crude lost 2.14% to $98.15 a barrel. Tim Waterer, chief market analyst at KCM Trade, noted that the decline in prices may be attributed to the removal of a 'risk premium' as investors become more optimistic about a diplomatic resolution.
Despite ongoing attacks by Yemen's Iran-backed Houthis on Saudi Arabia, oil shipments from the kingdom have partially recovered. According to JPMorgan analysts, Middle East oil flows averaged 17.1 million barrels per day over the past 10 days, just 6.1 million barrels below the 2025 average.
The attacks, which included strikes on an Aramco facility in Yanbu and a key oil export hub, prompted Saudi Arabia to increase exports through the Strait of Hormuz this month and next. China has also asked Iran to help rein in the Houthis following the attacks.