Oil plunges nearly 8% on signs of dialogue between US and Iran
Brent reached US$ 104.40 after the Iranian president said the supreme leader gave the government powers to negotiate a deal.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
Oil prices fell nearly 8% on Monday (2), Folha de S.Paulo reported, after Iran's president, Masoud Pezeshkian, said the supreme leader granted the government "certain powers" in negotiations for an agreement with the United States.
A barrel of Brent, the global benchmark, reached US$ 104.40, down 7.96%, the lowest since October 21. WTI, used in the US, was down 7.77%, at US$ 96.04.
The drop came as traders weighed the chance of the US and Israel launching a new round of attacks on Tehran after the American midterm elections, on Tuesday. Israeli Prime Minister Benjamin Netanyahu is pressing Donald Trump for a quick resumption of the war, according to people interviewed for the report.
Trump ruled out attacking before the vote, but has not yet decided whether he will resume the offensives. Ayatollah Mojtaba Khamenei, who has not appeared in public since the war began on February 28, has the final word on matters of state.
For ING strategist Francesco Pesole, prices still incorporate a high geopolitical risk premium, and the more moderate rhetoric helped reduce them.