Crude oil slid 4.5% toward $99 a barrel on Monday, as renewed hopes for a diplomatic resolution to the US–Iran standoff eased fears of further supply disruptions. Media reports indicated that President Donald Trump wants to allow more time for negotiations before considering renewed military action, and that he told Israeli Prime Minister Benjamin Netanyahu he would prefer a diplomatic outcome. US Secretary of State Marco Rubio likewise said Trump favours resolving the conflict peacefully.
Iranian officials also signalled that an agreement remains within reach after two days of Qatar-mediated talks, on the condition that any commitments are effectively implemented. Even so, the diplomatic overtures are unfolding against a backdrop of ongoing reports that both sides are preparing for a possible escalation after the November 3 US midterm elections.
Separately, OPEC+ decided to leave its current production targets unchanged through December, as the alliance continues to monitor and evaluate global supply–demand dynamics.
