Oil prices drop 7% as U.S.-Iran talks ease war fears

Crude oil prices plunged more than 7% on Monday as the U.S. and Iran signaled openness to a diplomatic deal, easing fears of military conflict. Brent crude fell 7.7% to $104.66 a barrel by midday. U.S. Secretary of State Marco Rubio said President Donald Trump prefers a peaceful resolution, though no final decision has been made. Iranian President Masoud Pezeshkian expressed a willingness to negotiate, with mediators reviewing a September proposal that includes demands for lifted sanctions and reduced U.S. military presence. The price drop reflects reduced risk premiums after eight months of conflict, with Brent having exceeded $110 last week. Reports indicate the U.S. has prepared for possible military action post-midterm elections, while Vice President JD Vance has also pursued peace talks.