Oil prices extended their decline on Monday, with Brent crude falling below $98 a barrel after recording its biggest weekly loss since April 2020. Traders assessed conflicting signals from Washington over efforts to end the US-Iran conflict, while fresh attacks in the Middle East kept supply risks in focus.
Brent crude futures fell below $98 a barrel after shedding more than 16% last week. West Texas Intermediate crude traded near $90 a barrel. Oil has retreated from a six-month high reached at the end of October, as the outcome of the US midterm elections raised expectations that the conflict would not escalate significantly.
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The decline reflects growing hopes of a diplomatic resolution, although fresh hostilities and uncertainty over negotiations continue to complicate the outlook for energy supplies.
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US-Iran Talks Face Fresh Uncertainty
US Secretary of State Marco Rubio played down the prospects of a breakthrough in negotiations with Iran, saying Tehran's demands so far were unacceptable and, in some cases, "outrageous and ridiculous".
His comments contrasted with US President Donald Trump's more conciliatory tone. CNN reported on Sunday that Trump had described further military strikes as "highly unlikely" if negotiations made substantial progress.
The differing signals from the US administration left traders weighing the possibility of a diplomatic settlement against the risk of renewed military action.
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Attacks In Middle East Keep Supply Risks In Focus
Fresh attacks in the region added to concerns about the security of energy infrastructure and shipping routes.
A tanker was reportedly struck by an unknown projectile over the weekend while sailing outbound through the Strait of Hormuz, according to the UK Maritime Trade Operations.
Separately, Iran-backed Houthi rebels in Yemen damaged offices of Saudi state oil company Saudi Aramco in Riyadh in an attack. Saudi forces retaliated by destroying two missile launchers, according to the supplied account.
The developments come as traders monitor the security of the Strait of Hormuz, a key route for global oil shipments, alongside diplomatic efforts to end the conflict.
Asian Markets Trade Mixed
Asian equity markets opened mixed on Monday, with Japanese stocks advancing while South Korean and Australian equities declined.
Japan's Nikkei 225 gained 1.44%, while the broader Topix rose 2.09%. South Korea's Kospi fell 0.69% and the small-cap Kosdaq slipped 0.87%. Australia's S&P/ASX 200 declined 0.31%, reversing its initial gains.
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