Brent crude futures fell 5.4% to $92.97 a barrel on Monday as President Donald Trump signaled restraint on Iran, offsetting supply concerns prompted by a pipeline attack in Saudi Arabia.
Brent and West Texas Intermediate Prices Drop
- Brent crude dropped $5.34 to settle at $92.97 a barrel on Monday, according to CNBC reporting.
- West Texas Intermediate lost $3.68, or 4.1%, ending the session at $87.15 a barrel.
- The recent selloff follows a 16% plunge in the Brent benchmark last week, marking its steepest weekly decline since the start of the Covid-19 pandemic.
Trump Downplays Strikes as Diplomatic Optimism Grows
Oil prices slid on Monday after President Donald Trump downplayed the likelihood of renewed strikes on Iran, stating he was highly unlikely to order fresh attacks as long as talks to end the conflict progressed, CNBC reported.
The remarks reinforced optimism sparked by unconfirmed reports of a potential U.S.-Iran diplomatic breakthrough. According to Al Arabiya, talks concerning Tehran’s nuclear program gained fresh momentum following a joint initiative put forward by Qatar and Pakistan.
Drawing on anonymous sources, Al Arabiya stated that Washington was prepared to allow Iran to continue enriching uranium to 3.67%, with Tehran supposedly agreeing to the proposed limit. However, neither Washington nor Tehran confirmed the reported enrichment agreement, and a senior Qatari official reportedly disputed details of the proposal, according to Oilprice.com.
U.S. Secretary of State Marco Rubio also dismissed suggestions of an imminent breakthrough over the weekend, telling reporters that Tehran’s demands were “not just unacceptable, but in some cases outrageous and ridiculous.”
Fire Breaks Out at Saudi Arabia Oil Pipeline
Despite diplomatic maneuvers, physical disruptions persisted across the Middle East. As reported by Oilprice.com and CNBC, the Saudi Arabian Ministry of Energy verified on Monday that the Medina area was the target of an assault on its vital East-West oil pipeline, which resulted in a minor fire.
Emergency crews extinguished the blaze, and authorities reported no casualties or disruption to pipeline operations. The pipeline allows Saudi Arabia to export crude through the Red Sea, bypassing the Strait of Hormuz.
Additional security incidents kept supply concerns in focus. CNBC noted that the Houthis claimed responsibility for a Sunday strike directed at the corporate headquarters of Saudi oil conglomerate Aramco, situated centrally within the Riyadh financial district. Both the U.S. and Iran also reported that shipping had been hit in or near the Strait of Hormuz over the weekend.
| Crude Benchmark | Price Movement | Percentage Change |
|---|---|---|
| Brent Crude | -$5.34 | -5.4% |
| West Texas Intermediate | -$3.68 | -4.1% |
Broader Inventory Pressures
Stocks of crude oil in the U.S. Strategic Petroleum Reserve fell to 279.5 million barrels last week, reaching the lowest level since October 1982 according to Department of Energy data cited by CNBC.
Meanwhile, TACenergy analysts noted in a client communication that market sentiment continues to lean toward peace expectations despite ongoing physical conflict. A Qatari official was scheduled to meet with President Donald Trump on Monday to discuss a possible ceasefire and renewed nuclear negotiations.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
