Oil fell about 6% on Monday as talks between Iranian and Qatari officials on ending the US-Israeli war with Iran lifted hopes for reduced Middle East supply disruptions, while Iran's president said the supreme leader had granted the government "certain authorities" regarding peace talks.
Iranian negotiators held days of talks with Qatari mediators aimed at ending the war with the United States, and a draft proposal is being circulated with a follow-up meeting possible, an official briefed on the talks said on Monday.
Brent crude futures fell $6.78, or 6.0%, to $106.65 a barrel by 1357 GMT, while US West Texas Intermediate crude was down $6.37, or 6.1%, at $97.75.
The contracts fell as low as $105.86 and $97.12, respectively, after Iranian President Masoud Pezeshkian said that Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain authorities for peace talks, boosting expectations of a diplomatic breakthrough, analysts said.
Pezeshkian added Tehran "will try to resolve the problem with dialogue", without elaborating, according to state media.