Gas prices are displayed outside a Shell station in Los Angeles, California. [AFP]
Gas prices are displayed outside a Shell station in Los Angeles, California. [AFP]

International oil prices tumbled more than 7% Monday (local time) after news broke that the United States and Iran were pursuing peace negotiations.

Brent crude futures for December delivery closed down 7.63% at $104.77 per barrel on the London ICE Futures Exchange. West Texas Intermediate crude futures for December delivery settled 7.36% lower at $96.46 per barrel on the New York Mercantile Exchange. During trading, Brent briefly fell into the $103 range and WTI dipped as low as the $95 range.

Brent had surged to a six-month high of $117.64 per barrel on Friday as fears mounted that Middle East tensions could escalate further. Over the weekend, however, prices tumbled on growing expectations that mediating countries including Qatar could help broker a diplomatic breakthrough to end the war between the US and Iran.

Iranian President Masoud Pezeshkian said Monday that Iran was seeking dialogue to resolve the crisis and that Supreme Leader Ayatollah Mojtaba Khamenei had authorized the government to pursue those efforts. Iran is also in discussions with mediators including Qatar and Pakistan on reopening the Strait of Hormuz and resuming peace negotiations. Saudi Arabia, the UAE and other regional states, in addition to Qatar, held talks with Iran on ways to ease tensions in the Middle East and agreed to pursue follow-up meetings.

Iran is reported to have put forward a proposal under which it would reopen the Strait of Hormuz within two days if the US accepts its conditions for lifting the blockade. US President Donald Trump has said at multiple campaign rallies that Iran wants to reach a deal with the United States and that an agreement could be possible. Expectations for a ceasefire deal have continued to build as back-channel contacts persist, including a letter that US Vice President JD Vance sent to Iranian leadership.


kate01@heraldcorp.com