Oil prices drop around 5% on Monday, reaching a three-week low after U.S. President Donald Trump cancels a planned attack on Iran while seeking a deal that could increase oil supply from the Gulf. In early trading, Brent crude futures are down about 4.8% to roughly $83.7 per barrel, with U.S. West Texas Intermediate (WTI) around $79.8, down about 5.8%. The decline puts Brent on track for its lowest close since mid-July. Multiple reports link the move to shifting expectations about near-term geopolitical risk and potential changes to supply.
The reports also highlight disagreement about the status of U.S.-Iran diplomacy. Iran’s government says there are no talks underway and no plans for meetings. This contrasts with Trump’s statements suggesting negotiations were set to occur, which he cited as part of the rationale for postponing attacks. Separately, traders are also factoring in futures contract timing, including the transition to October contracts after the September front month expired on Friday.
