[Oil Prices] Plunge More Than 7% on Hopes for U.S.-Iran Talks

[Financial News]  

International oil prices plunged more than 7% on the 2nd (local time). The U.S. and Iranian presidents’ suggestion that the war could end through diplomatic negotiations sent prices tumbling.
Brent crude, the benchmark grade for international oil prices, for January delivery next year settled at $104.77 a barrel, down 7.6% from the previous session. Losses widened further to 8.2% after regular trading ended.
West Texas Intermediate crude (WTI), the benchmark grade for U.S. oil prices, for December delivery fell 7.4% to close at $96.46 a barrel. WTI recorded its biggest one-day decline since July 17.
U.S. President Donald Trump told reporters that day that Iran “wants a deal,” adding that “a deal could be reached.”
Secretary of State Marco Rubio had earlier raised hopes, saying Trump preferred resolving the issue through diplomacy rather than using military force against Iran. He also stressed that the president had “not yet decided” to resume strikes on Iran.
Talks of negotiations also came from the Iranian side.
According to the state-run Islamic Republic News Agency (IRNA), President Masoud Pezeshkian said Iran was seeking to resolve the issue through dialogue. Pezeshkian particularly stressed that Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, had granted the government special authority for this purpose. In other words, resolving the issue through negotiations was the supreme leader’s wish.
According to IRNA, Iranian Foreign Minister Abbas Araghchi also said an agreement with the United States would be possible if it “shows goodwill and genuinely seeks a peaceful solution.”

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