Oil prices fell on Monday as diplomatic efforts to ease the U.S.-Israeli war with Iran tempered fears of further supply disruptions. Houthi attacks on Saudi Arabia kept geopolitical risks elevated. Trump said a decision on a deal with Tehran is nearing.
Oil prices fell on Monday as diplomatic efforts to ease the U.S.-Israeli war with Iran tempered fears of further supply disruptions, although Houthi attacks on Saudi Arabia kept geopolitical risks elevated. Brent crude futures fell 1.4% to $115.04 a barrel by 06:42 ET (10:42 GMT).
U.S. West Texas Intermediate futures declined 2.1% to $101.13 a barrel over the same period.
Houthi strikes on Saudi Arabia lift prices on Friday
Both benchmarks climbed nearly $3 on Friday after attacks by Iran-backed Houthi militants in Yemen heightened concerns about the security of energy infrastructure in Saudi Arabia. Saudi-aligned government forces in Yemen and the Houthis have been fighting for control over key territories, including areas overlooking the Bab el-Mandeb Strait, a key chokepoint for Gulf oil shipments.
Brent settled at $116.72 a barrel on Friday, its highest closing level since April 29, and gained about 6% over the week. WTI settled at $103.27, up 2.3% for the week.
Over the weekend, the Houthis claimed responsibility for strikes targeting a Saudi airport and oil facilities on Saturday. Saudi Arabia said on Sunday it had intercepted additional missiles and drones.
Mediators head to Tehran as Trump weighs a deal
Qatari mediators traveled to Tehran on Sunday as part of efforts to de-escalate regional tensions with Washington, according to media reports. Reuters reported that senior officials from Saudi Arabia, Turkey and Pakistan were set to meet Iranian counterparts in Tehran on Monday to discuss regional coordination.
Trump told Fox News on Sunday that it was "getting to be decision time" on whether to strike a deal with Tehran or finish it off, raising the prospect of renewed hostilities after months of conflict. Iran's foreign minister said that if rationality prevailed, the United States would not attempt another attack.
Analysts at Yardeni Research said in a note that the risk of further military escalation remains high.
Source: Investing.com
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