Oil prices fall by 6% as hopes of US-Iran peace talks ease supply concerns

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New Delhi: International prices of crude oil plummeted nearly 6 per cent on Monday after investors renewed optimism about efforts for diplomatic discussion between the United States and Iran to resolve the ongoing conflict in Middle East.

Brent crude is international benchmark, fell 6.1 per cent to $106.54 per barrel, while US West Texas Intermediate (WTI) crude was down 6.3 per cent at $97.56 per barrel.

The move came after reports emerged of talks between Iranian and Qatari officials to reach a solution to the conflict.

An official involved in the talks said the draft was being circulated and another meeting could be scheduled.

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Further optimism in the market was created when Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei had approved the government to some extent to undertake the peace talks.

Tehran is expected to try to defuse the crisis through talks, Pezeshkian said, which could lead to a breakthrough.

Oil prices had risen sharply in recent weeks due to concerns of supply disruptions and geopolitical tensions in the Middle East, particularly near the critical Strait of Hormuz.

Nevertheless, investors continue to be cautious given the uncertainty over the results of the negotiations and any new escalation may cause another spike in crude oil prices.

Also Read: Iran: Araghchi says Doha consultations outcome depends on US response, no breakthrough in 2-day…

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