Brent crude falls over 6.5% on Iran war diplomacy hopes
The Guardian reports Brent crude fell as low as $105.55 a barrel, the lowest since 16 October, as Iran signalled continued mediated talks with the US.
What you need to know
The Guardian reports Brent crude fell more than 6.5% to as low as $105.55 a barrel on Monday, its lowest since 16 October, after Iran's foreign minister said mediated consultations with the US to end the eight-month war were continuing and reports that Supreme Leader Mojtaba Khamenei had granted his government negotiating powers.
- The Guardian says Brent crude fell over 6.5% to as low as $105.55 a barrel, the lowest since 16 October.
- Iran's foreign minister, Abbas Araghchi, said consultations through mediators were intensive, per the report.
- The Guardian reports Qatari officials sought the release of more than $6bn in Iranian assets so Tehran might reopen the Strait of Hormuz.
- The report says the yield on 10-year UK gilts fell 10 basis points to its lowest since 22 September.
- IAG rose 4.2% in London and United Airlines jumped 7% in New York, according to The Guardian.
Diplomatic signals behind the selloff
The Guardian reports that oil prices fell after Tehran disclosed that contacts between Iran and the US aimed at ending their eight-month war were continuing. Iran's foreign minister, Abbas Araghchi, said consultations through mediators were intense and that Iran had presented its conditions and proposals, with the outcome depending on Washington, according to the state outlet IRNA as cited by the report.
The Guardian also reports weekend efforts by Qatari officials to negotiate the release of more than $6bn in Iranian assets so Tehran might allow the Strait of Hormuz to reopen. The report notes that Donald Trump had earlier warned Iran would receive "the hammer" absent progress, speaking at a campaign rally in Iowa before the US midterms.
Investors were also encouraged by reports that Iran's supreme leader, Mobata Khamenei, had granted powers to his government in talks with the US, according to The Guardian.
Market reaction
The Guardian reports IG chief market analyst Chris Beauchamp describing the news as favourable for stock markets that had felt pressured by rising oil, while flagging the risk that Trump could act after the midterms.
According to the report, government borrowing costs fell, with the yield on 10-year UK bonds down 10 basis points to its lowest since 22 September. Shares in British Airways parent IAG rose 4.2% in London, while United Airlines jumped 7% in New York, The Guardian reports.
How low did Brent crude fall on Monday?
The Guardian reports Brent crude dropped more than 6.5% to as low as $105.55 a barrel on Monday, the lowest level since 16 October.
Sources & context
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