Oil Prices Drop as Diplomacy Targets U.S.-Iran War

Global oil prices declined on Monday, with Brent crude falling to approximately $93 a barrel and West Texas Intermediate dropping below $87. This downward trend follows a weeklong slide fueled by market expectations that diplomacy will resolve the U.S.-Israeli war with Iran. The price drop is further supported by a physical surplus, as global oil production has exceeded demand since September.

Donald Trump faces increased domestic pressure to end the conflict following midterm elections in which Democrats won both houses of Congress. Vice President JD Vance has engaged in negotiations with Iranian officials and has linked the ongoing war to Republican losses in the elections. Despite these diplomatic efforts, uncertainty persists over whether the combatants will concede to specific demands.

Regional hostilities continue despite the diplomatic push. On Sunday, Iran-backed Houthi militias executed a strike on a Saudi Aramco office tower in Saudi Arabia.