Oil drops 7pc as Iran signals openness to talks

International crude benchmarks lost more than 7% on Monday, with Brent finishing at USD104.77 a barrel and US West Texas Intermediate at USD96.46. Business Recorder linked the decline to renewed diplomatic activity involving Iran and Qatar, which raised hopes of reduced disruption to Middle East oil supplies.

Iranian President Masoud Pezeshkian said the government had authority to pursue peace discussions, while Qatari officials engaged with Tehran on a possible US-Iran agreement. Prices had risen in October amid worries that the conflict could intensify, and the market remains sensitive to developments around the region. The report also noted that nearly 1 billion barrels have been drawn from global inventories since the war disrupted Strait of Hormuz shipping, while Saudi crude exports rose in October from September. Goldman Sachs said Brent could reach USD140 in 2027 if Gulf production remains 3.5 million barrels per day below its 2025 average.