Crude oil prices fell sharply on Monday. West Texas Intermediate (WTI) and Brent both declined by more than 4%. WTI dropped below $100 a barrel, while Brent fell to near $108.
Renewed U.S.-Iran diplomatic efforts sparked hopes of a possible resolution to the conflict and an easing of major Middle East supply disruptions.
The sell-off reversed a strong rally in October. It came despite a key group of OPEC+ producers deciding on Sunday to maintain current production targets for December. The decision was widely expected, leaving geopolitical developments in focus.
Analysts said a diplomatic breakthrough is uncertain, but the possibility is enough to remove some of the risk premium built into oil prices.