Oil prices fell on Monday following reports that the United States and Iran were seeking diplomatic solutions to their ongoing conflict.
Brent crude futures for January delivery, the international benchmark, declined by 3.31 per cent to $109.67 a barrel, while US West Texas Intermediate crude futures for December delivery dropped 3.34 per cent to $100.64 per barrel.
US Secretary of State Marco Rubio said President Donald Trump preferred a diplomatic resolution to the conflict with Iran rather than resorting to military force.
Rubio said Trump had not made a decision on further military action but remained confident in the US military’s ability to achieve its objectives if necessary.
“He hasn’t made a decision… What the President expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really have everything we need to be successful. But we would prefer to do it peacefully,” Rubio told reporters over the weekend.
Iranian authorities also indicated that a diplomatic agreement remained possible following two days of talks mediated by Qatar, provided that the demands made during the negotiations were implemented in practical terms, according to Al Jazeera.
The development comes amid reports that both the US and Iran are preparing for further military strikes after the US midterm elections.
Iranian Supreme Leader Mojtaba Khamenei on Saturday urged the country’s armed forces to respond to “any level or type of threat” with an “immediate, impactful, and geographically unrestricted response”.
Concerns surrounding the conflicts in the Middle East and Ukraine are expected to persist in the near term.
