Oil prices plunge over 4% as Iran expresses desire for peace talks with Israel

Crude oil futures fell more than 4% in early trading on Wall Street on Monday, following reports that Iran is seeking to cease hostilities with Israel and reinstate nuclear discussions.

West Texas Intermediate (WTI) crude oil for July delivery declined by $3.30, or 4.52%, to $69.68 per barrel. Brent crude, the global benchmark, dropped by $3.23, or 4.35%, to $71.00 per barrel.

According to officials cited by the Wall Street Journal, Iran is aggressively attempting to end current hostilities and resume diplomacy regarding its nuclear programs. Messages have been relayed to Israel and the United States through Arab intermediaries. Iranian representatives emphasised their willingness to re-engage in negotiations, provided that the U.S. refrains from joining the conflict.

Iran has additionally communicated to Israel, noting that it is mutually beneficial to control the violence. Furthermore, Iran has reportedly warned Arab officials that, absent the chance for dialogue with the U.S., it might expedite its nuclear development and broaden the conflict’s scope.

Crude oil prices

The decline in oil prices reflects a shift in market sentiment, as investors reassess the potential for supply disruptions in the Middle East. While the conflict between Iran and Israel continues, the prospect of renewed diplomatic efforts has eased concerns over a prolonged escalation.

Analysts will be closely monitoring developments in the coming days to assess the impact of any potential ceasefire or resumption of negotiations on global oil markets.