Oil Prices Plunge 7% as U.S. and Iran Signal Room for Diplomacy

Oil prices plunged nearly 7% on Monday after Washington and Tehran both signaled they would give diplomacy a chance, wiping out part of the war premium that lifted crude through October. 92. Iranian President Masoud Pezeshkian said on Monday that the Supreme Leader has granted the government “certain authorities” over peace talks and that Tehran “will try to resolve the problem with dialogue,” state media reported.

Foreign Minister Abbas Araghchi said negotiators in Qatar are working on a proposal that could reopen the Strait of Hormuz in as little as two days if Washington meets a series of conditions. S. naval blockade of its ports, the lifting of oil sanctions and a halt to fighting on all regional fronts, is not holding direct talks with the United States.