Brent Crude tumbled 4.25% to $108.61 per barrel, while WTI Crude dropped 4.32%, settling at $99.62. The price correction follows a weekend of mediation efforts involving Qatari officials. While the contents of the circulating draft remain undisclosed, Iranian Foreign Ministry spokesman Esmaeil Baghaei reiterated that Tehran demands an end to the U.S. naval blockade as a prerequisite for reopening the Strait of Hormuz.
Oil Prices Slide as U.S.-Iran Peace Proposal Circulates
A draft proposal aimed at ending the U.S.-Iran conflict began circulating Monday after Iranian negotiators departed Qatar, triggering a sharp retreat in global energy markets. With the immediate threat of military escalation cooling, traders are recalibrating positions on the expectation of potential diplomatic breakthroughs in the coming days.
Iran claims the critical waterway could be secured within 48 hours should its conditions be met, a significantly faster timeline than the one rejected by President Donald Trump last September. Despite this optimism, market participants remain cautious. Analysts at ING warn that the absence of weekend military action does not guarantee a lasting resolution, noting that the risk of new U.S.-Israel strikes persists following the U.S. midterm elections. KCM Trade analyst Tim Waterer noted that while diplomatic hopes have tempered prices, the market remains fragile and sensitive to further developments.
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