The market move and the numbers
Oil sold off as diplomatic talk took some heat out of war-risk pricing. Brent, the global benchmark, was down 6.4% to $106.20 a barrel at 9:50 a.m. ET, while U.S. West Texas Intermediate fell 6.5% to $97.35.
Later quote screens showed ICE Brent Crude Jan′27 last at 105.75, down 7.68 or 6.77% at 4:43 PM BST, and WTI Crude Dec′26 at 97.19, down 6.93 or 6.66% at 10:43 AM EST. The feeds were delayed and listed in U.S. dollars.
Why diplomacy mattered today
Washington and Tehran both sounded out room for a deal. U.S. Secretary of State Marco Rubio conveyed that President Donald Trump would rather avoid using military force against Iran and is aiming for a diplomatic resolution.
Tehran echoed conditional openness. According to Iran's Foreign Minister Abbas Araghchi, an agreement with the U.S. is achievable if Washington "demonstrates goodwill" and is "truly seeking a peaceful solution." He said mediators are discussing the plan Iran put forward at the United Nations General Assembly in September, and further said that, from Tehran's perspective, the U.S. should lift sanctions, scale back its regional military footprint to previous levels, and halt the blockade.
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The risks that remain and what to watch
The hawkish floor is still there. Iranian Supreme Leader Mojtaba Khamenei on Saturday told the armed forces to meet "any level or type of threat" with "an immediate, impactful, and geographically unrestricted response."
Broader conflict risk has not faded. "Attacks on ships and refineries in the Middle East and on civilians in Ukraine continue, doing little to inspire confidence in the prospects for lasting ceasefires in the foreseeable future," said Tamas Varga of PVM Oil Associates. "Nonetheless, hope springs eternal."
What it means for your portfolio
Prices just reminded everyone how headline sensitive they are. Diplomatic signals can yank crude lower, but ongoing conflicts and threats keep a floor under volatility. In plain English: the path for energy and related equities will likely be choppy as talks and tensions trade places in the news cycle.
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