Oil Prices Slide on Diplomacy Hopes Amid US-Iran Conflict

Oil prices declined to their lowest in over a week on Monday as investors pinned hopes on diplomacy between the US and Iran during a UN meeting. The Brent crude futures price fell to $101.71 per barrel, down 2.08% from Friday's close.

The US West Texas Intermediate (WTI) crude price also dropped, losing 2.14% to reach $98.15 per barrel. Analysts believe that the risk premium in oil prices is being reduced as investors become optimistic about a potential diplomatic resolution to the conflict.

According to Tim Waterer, chief market analyst at KCM Trade, 'It seems 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 cautioned that whether this hope will be justified remains uncertain.

The WTI price broke below the key psychological support level of $100 per barrel. Some investors may have rolled over their positions in the October contract ahead of its expiry on Tuesday.