Oil drops to $97 amid hopes of US-Iran peace deal

Brent futures stood at $97.36 a barrel, down 0.98%, while West Texas Intermediate slipped 0.45% to $90.42 during Monday trading, Mettis Global reported. The retreat came after Donald Trump said a negotiated settlement with Iran could make additional US strikes unnecessary, although uncertainty over the conflict remained.

Oil had already suffered a 17% weekly decline, its sharpest percentage fall since the early COVID-19 period, as traders also assessed oversupply risks. JPMorgan put the global surplus at 1.1 million barrels per day in September and 1.4 million in October, citing stronger supply and subdued demand. Separately, Iraq said it had agreed with Washington on an export route near Oman through the Strait of Hormuz, and reported conflict-related losses of $60 billion.