Oil prices drop more than $7 a barrel as Trump signals restraint on Iran
Brent crude hit its lowest level since late August after US President Donald Trump downplayed the likelihood of renewed strikes on Iran.
Brent crude futures fell by more than $7 a barrel in post-settlement trade on Monday, reaching their lowest levels since late August, according to Mint. The decline followed comments from US President Donald Trump, who said on Sunday he was highly unlikely to order fresh attacks on Iran if talks to end the conflict progress.
Brent crude futures settled down 5.85 per cent at $92.57 a barrel before continuing to fall. US West Texas Intermediate futures settled down 4.38 per cent at $86.85, and also continued to drop in post-settlement trade. The Brent benchmark previously plunged 16 per cent last week.
TACenergy analysts stated in a note that the prospects for peace appeared to have encouraged sellers even as fighting continues. While Trump had previously hinted at resuming attacks, a senior Iranian security official told state media that Tehran has no plans to negotiate unless Washington meets seven conditions from a June interim agreement.
In separate developments, the Saudi-led coalition said on Monday it destroyed a factory and a chemical plant used by the Houthis to produce ballistic missile components and fuel. The Houthis claimed responsibility for an attack on Sunday at the Saudi Aramco corporate office in Riyadh, which caused window damage according to the Saudi energy ministry.
Regarding maritime security, Saudi Arabia's foreign minister and his Omani counterpart discussed diplomatic efforts to safeguard sea lanes during a phone call on Monday. Meanwhile, Iraq has reached understandings with the US to allow oil exports through the Strait of Hormuz via a lane near Oman, according to Foreign Minister Fuad Hussein.
