Oil drops 7% as Iran signals openness to peace talks

Oil prices fell more than 7% on Monday as negotiations between Iranian and Qatari officials raised hopes for an end to the US and Israel war against Iran and stabilization of Middle East oil supplies. Brent futures dropped 8.15% to $104.18 a barrel, while WTI fell 7.76% to $96.04. Iranian negotiators concluded talks with Qatari mediators aimed at ending the war, with a draft proposal circulating and a possible follow-up meeting. President Masoud Pezeshkian said the supreme leader granted the government certain authorities for peace negotiations, adding Tehran will try to resolve the problem through dialogue. Analysts expressed skepticism after past false hopes, though October saw Brent close at a six-month high on escalation fears. Goldman Sachs raised price forecasts, warning Brent could jump to $140 in 2027 if Gulf production remains 3.5 million barrels per day below its 2025 average.