Signals of US-Iran dialogue cut oil prices by 6.7%

Signs of a return to diplomacy in efforts to resolve the conflict between the United States and Iran have led to a sharp drop in oil prices on international markets.

US crude oil WTI fell by as much as 6.7%, dropping to $97.10 per barrel. Brent, the main benchmark for international markets, also fell by 6.7%, to $105.86 per barrel.

The price decline accelerated after Iranian President Masoud Pezeshkian said the government in Tehran was seeking a solution through dialogue. According to the state news agency IRNA, he said Supreme Leader Mojtaba Khamenei had given the government the necessary authority to pursue this process.

At a meeting with provincial governors, Pezeshkian said the conflict could not force Iran to surrender. He added that Tehran opposed demands it considered excessive.

The prospect of renewed negotiations between Washington and Tehran has also had a positive impact on financial markets: major European stock markets rose, while Wall Street futures posted gains.

On European stock markets, Madrid rose 0.8%, Milan 0.5%, Paris 0.3% and Frankfurt 0.2%. London, meanwhile, edged down 0.1%.

Natural gas prices also fell, dropping 8.5% to 95 euros per megawatt-hour.