On Monday, Brent crude futures for January delivery dropped 3.31% to $109.67 per barrel, while U.S. West Texas Intermediate futures for December fell 3.34% to $100.64 per barrel. U.S. Secretary of State Marco Rubio indicated that President Donald Trump favors a diplomatic resolution over military action, emphasizing confidence in the U.S. military's capabilities if necessary.
Concurrently, Iranian officials suggested that a deal could still be reached following recent talks mediated by Qatar. However, reports indicate that both nations are preparing for potential military strikes after the upcoming midterm elections, which adds uncertainty to the market.
Analyst Tamas Varga from PVM Oil Associates noted that ongoing conflicts in the Middle East and Ukraine continue to dampen prospects for lasting ceasefires, although there remains a glimmer of hope for resolution