Brent crude falls over 6% as regional diplomacy on Iran gathers pace
Brent crude fell more than 6% on Monday to about $110 a barrel, according to Euronews, as regional mediators headed to Tehran. Prices slipped further on Tuesday, CNBC reported.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- Brent fell from about $117.4 at Friday's close to around $110 on Monday morning, Euronews reported.
- Saudi Arabia, Turkey, Pakistan and Iran held talks in Tehran on Monday.
- CNBC put December Brent at $114.80 on Tuesday, down 0.87%.
Oil prices dropped sharply on Monday as diplomatic efforts to calm the Iran war picked up and US President Donald Trump said he was weighing a deal with Tehran. According to Euronews, Brent crude, the global benchmark, fell more than 6% from about $117.4 a barrel at Friday's close to around $110 at the time of writing.
US benchmark West Texas Intermediate fell about 2% to $101.5 a barrel, Euronews said. Friday's Brent close was its highest since 19 March and about 2% below the $119.5 peak reached in early March at the start of the war. Before the conflict, Brent traded at around $72.
Prices had climbed the previous week after Yemen's Houthis, an Iran-aligned armed group, attacked airports and energy facilities in Saudi Arabia, the world's largest oil exporter. The Houthis said they struck Saudi airports and energy sites again over the weekend, while Riyadh said it shot down more missiles and drones.
On the diplomatic side, Qatari mediators reportedly travelled to Tehran on Sunday in coordination with Washington. On Monday, officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran. Euronews said Saudi Arabia's defence minister, Pakistan's army chief and Turkey's intelligence chief were due to attend regional security talks.
Riyadh said the talks were meant to keep diplomatic channels open and prevent another escalation, according to CNBC. Iranian state media said the four countries agreed to keep engaging to advance regional peace and security.
In a Fox News interview on Sunday, Trump described his choice as whether to make a deal with Iran or "finish them off". He also said, citing the Wall Street Journal, that oil flowing out of the Strait of Hormuz was now above pre-war levels.
The strait carried about a fifth of the world's oil before the war. Ship-tracking firm Kpler said Gulf crude exports excluding Iran returned to pre-war levels in September, but about 40% now bypass the strait through pipelines, against 17% before the conflict.
On Tuesday, CNBC reported that December Brent futures slipped 0.87% to $114.80 a barrel, and WTI futures declined 0.86% to $100.88. It said losses were limited because the prospect of a lasting resolution looked fragile, with Houthi attacks on Saudi Arabia continuing.
Why it matters
Global oil price moves feed into petrol prices and the petroleum import bill in Pakistan. Pakistan's army chief was also reported to be due at the regional talks in Tehran.
