The key facts

  • Brent fell 7.94% to $104.43 per barrel, WTI fell 7.32% to $96.50
  • Iran's Supreme Leader Mojtaba Khamenei approved negotiations to end the conflict
  • Seven OPEC+ countries kept their December production targets unchanged

Sharp drop in oil prices

The international benchmark Brent fell below $105 per barrel on Monday for the first time since early October, losing almost 8% amid easing concerns about oil supply disruptions. According to the Anadolu Agency, as of 17:00 GMT a barrel of Brent cost $104.43, down 7.94%. The US benchmark WTI fell by $7.62, or 7.32%, to $96.50 per barrel.

US–Iran diplomatic track

The price decline coincided with signs of de-escalation of the conflict. According to Iran's state news agency IRNA, Iran's Supreme Leader Mojtaba Khamenei approved the government's efforts to negotiate an end to the conflict. Iranian Foreign Ministry spokesman Esmaeil Baghaei said on Monday that Deputy Foreign Minister Kazem Gharibabadi exchanged messages with Washington through Qatari mediators in Doha. According to him, the reopening of the Strait of Hormuz would require the US to lift the naval blockade of Iran.

Washington's position and the OPEC+ decision

US Secretary of State Marco Rubio said on Saturday that President Donald Trump prefers a diplomatic resolution and has not yet decided whether to order new strikes on Iran. Separately, on Sunday seven OPEC+ countries agreed to keep their December oil production targets unchanged, extending the pause in output increases that began in October.