Oil Drops 7% as Geopolitical Tensions Ease in the Gulf

Oil prices fell more than 7% following diplomatic moves between the United States and Iranian governments. The decline was driven by a decrease in fears regarding a military escalation in the Gulf region. Brent crude for January delivery closed at 101.70 dollars per barrel.

U.S. President Donald Trump reportedly expressed a preference for negotiations during a conversation with Israeli Prime Minister Benjamin Netanyahu. On the Iranian side, President Masoud Pezeshkian stated that the supreme leader has authorized the government to pursue peace talks. This stance reduced the risk premium that had inflated commodity prices over the previous week.

The financial market reacted with relief in U.S. Treasury yields. The DXY index, which tracks the dollar against major currencies, saw a slight decline. Despite this, analysts remain cautious about the durability of this diplomatic landscape following the midterm elections.

On Wall Street, optimism regarding energy did not prevent adjustments in the technology sector. Investors liquidated positions in artificial intelligence companies during the trading session. The environment remains volatile given the uncertainties surrounding the genuine willingness of the parties involved in the conflict.