Oil falls more than 4% as diplomacy hopes outweigh shipping risks
Brent and WTI extend their decline after Trump's comments on Iran, but a completed deal and normal shipping remain unconfirmed.
Oil prices extended their slide Monday as traders weighed President Donald Trump's more restrained comments on Iran against continuing threats to shipping near the Strait of Hormuz. Brent crude futures fell more than 5% in an early U.S. session snapshot, while U.S. West Texas Intermediate lost more than 4%.
At 9:27 AM ET, Brent was down 5.2% at $93.27 a barrel and WTI was down 4.5% at $86.71. Later morning reports still showed sharp losses, though prices and percentage changes varied with the time of the quote. These are intraday futures readings, not settlement prices.
Hopes for a deal are not a deal
Trump said Sunday that renewed strikes on Iran were highly unlikely as long as talks to end the conflict progressed. Both countries also reported attacks on shipping in or near the strait, leaving supply risks unresolved.
The price decline reflects expectations about diplomacy, not confirmation that an agreement has been signed or normal shipping has resumed. CoinDesk, citing Al Jazeera, reported that Qatar rejected a report about a proposed arrangement involving the release of frozen Iranian assets. That disputed report should not be treated as an agreed plan.
Lower crude prices put pressure on energy shares while helping airline and cruise stocks in morning trading. The trade-off remains important: cheaper fuel can ease costs, but the speed of the decline does not remove the risks around production and transport.
