Oil Hits 6-Month Low as Iran De-Escalation Talks Spur Selloff

Oil prices fell over 5% on Monday, set for the largest single-session decline in over six months, after President Trump noted that Iran was “seriously talking” with Washington, signaling potential de-escalation with the OPEC member.

Brent crude futures were down 5.3% at US$65.66 per barrel at press time, while U.S. West Texas Intermediate crude fell 5.5% to US$61.62 per barrel. Both contracts slid from multi-month highs after Trump’s weekend comments eased military strike fears.

"The distinct shift in his messaging has eased concerns of supply disruptions. This removed some risk premium out of the market, even as US military presence in the region continues to build," ANZ analysts said in a note.

"Nevertheless, tension remains high. Iran’s supreme leader warned of a “regional war” if the US were to attack. The market is also mindful of the OPEC meeting over the weekend that ended up ratifying plans to keep production steady in March, the last part of a three-month pause in production hikes."

At a meeting on Sunday, OPEC+ agreed to keep its oil output unchanged for March. In November the grouping had frozen further planned increases for January through March 2026 because of seasonally weaker consumption. - MSN