Crude oil fell below $89 a barrel on Monday, deepening the previous week’s 12.8% slide as markets weighed intensifying diplomatic efforts to end the Middle East conflict against ongoing regional attacks. US President Donald Trump signaled that large-scale strikes on Iran were unlikely if Tehran agreed to a robust agreement, ahead of talks with Qatar’s prime minister. However, the likelihood of a diplomatic breakthrough remains unclear.
US forces reportedly conducted strikes on Iran’s Qeshm Island overnight, while Secretary of State Marco Rubio sought to temper expectations for progress in the negotiations. At the same time, tensions remained high around the Strait of Hormuz, where a tanker was reportedly struck by an unidentified projectile.
In a separate development, Iran-backed Houthi rebels damaged Saudi Aramco offices in Riyadh, prompting Saudi forces to destroy two missile launchers. Yet despite heightened security risks and repeated attacks on shipping, crude exports from the Persian Gulf have started to recover.
