Oil Prices Post Moderate Declines

(MENAFN) Global oil prices retreated Monday as reports of potential ceasefire negotiations between Iran and the US tempered earlier gains and weighed on energy markets.

Brent crude futures slipped 1% to approximately $107 per barrel as of 08:00 GMT, while West Texas Intermediate (WTI) fell more sharply, declining 2% to $109 per barrel.

Both benchmarks had opened the week in positive territory before reversing course following reports that diplomatic back-channels were actively exploring a halt to hostilities.

Talks are underway between Washington, Tehran, and regional mediators over a possible 45-day ceasefire that negotiators hope could serve as a pathway to a permanent end to the conflict, media reported Sunday, citing multiple American officials familiar with the discussions.

However, sources cautioned that the prospects of reaching even a partial agreement within the next 48 hours remain slim.

The prospect of a ceasefire has injected a degree of cautious optimism into markets rattled by weeks of regional turmoil — particularly Iran's sustained restrictions on maritime traffic through the Strait of Hormuz, which has kept energy supply chains under acute pressure and propelled crude prices to elevated levels in recent sessions.

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