Oil Prices Decline Amid Potential Iran-Israel Truce Talks

Oil prices slid by $1 per barrel on Monday, responding to volatile trading conditions after Iran reportedly sought to end hostilities with Israel, possibly leading to a truce. The move eased concerns about a potential disruption in crude oil supplies from the contentious region.

Brent crude futures saw a decline of $1, or 1.35%, closing at $73.23 per barrel, while U.S. West Texas Intermediate crude futures dropped by $1.21, or 1.66%, settling at $71.77 per barrel. This development follows Iran's request for Qatar, Saudi Arabia, and Oman to urge U.S. President Donald Trump to influence Israel towards a ceasefire, with Tehran showing flexibility in its nuclear program negotiations.

Traders previously feared further escalation could threaten crucial energy infrastructure. Notably, oil prices had surged over 7% on Friday after Israel initiated bombing over Tehran's alleged nuclear advancements, thrusting oil into 'overbought territory'. However, no major oil export facilities have been affected till now, with attention focused on Iran's Kharg Island and the Strait of Hormuz.

(With inputs from agencies.)