Oil Prices Fall 6 Percent in a Day as US-Iran Diplomacy Shows Signs of Progress
Crude oil prices fell sharply in world markets as diplomacy to resolve the ongoing conflict between the United States and Iran showed signs of progress. With fears of disrupted fuel supplies from the Persian Gulf region easing somewhat, oil prices dropped by about 6 percent in a single day in international markets on Monday (2 November).
According to data at 2pm GMT on Monday, Brent crude, the international benchmark, fell by 6 dollars 90 cents, or 6 percent, to 106 dollars 50 cents a barrel. At the same time, US West Texas Intermediate (WTI) crude fell by 6 dollars 25 cents, or 6 percent, to 97 dollars 87 cents a barrel.
A report by Iran's state news agency IRNA said the country's Supreme Leader Mojtaba Khamenei has consented to the government's diplomatic initiative to end the ongoing conflict.
Iranian foreign ministry spokesman Esmail Baghaei said Iran's deputy foreign minister Kazem Gharibabadi visited Doha under Qatari mediation to convey a message to the United States. Tehran said the question of reopening the Strait of Hormuz has been linked to the condition of lifting the US military and naval blockade.
Meanwhile, US outlet Axios reported that in a phone call with Israeli Prime Minister Benjamin Netanyahu, US President Donald Trump said he wants to give the diplomatic solution effort a little more time before taking a final decision on a fresh military attack on Iran.
Amid the turbulence in the oil market, seven members of the OPEC Plus alliance of oil-exporting countries met on Sunday. The meeting decided to keep oil production at current levels in December as well, rather than increasing it.
