Brent oil steadied near $105 a barrel after plunging almost 8% on Monday, driven by optimism over potential US-Iran peace talks. West Texas Intermediate fell below $97, marking its biggest drop in three months. Iran’s president stated the supreme leader granted increased authority to negotiate, while former President Donald Trump hinted at diplomatic progress.
Despite this, tensions remain high following US strikes on Iran’s Qeshm Island at the Strait of Hormuz. Analysts warn prices could spike further if kinetic military actions escalate. The market decline occurred just before US midterm elections, where energy costs have become a central political issue.
European gas futures dropped nearly 9%, and US heating oil saw its steepest six-month decline. Brent had previously surged 14% in October due to fears of renewed conflict. Key sticking points in negotiations include sanctions relief, asset releases, and Iran’s nuclear program.
No major breakthrough has been confirmed.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing