Oil sinks about 7% as U.S. and Iran signal openness to diplomacy
WTI and Brent post their steepest one-day drops in months on peace-talk hopes; airlines catch a bid while energy shares lag.
Crude oil sold off sharply Monday after reports that Washington and Tehran were exploring a diplomatic path out of the Middle East conflict. West Texas Intermediate fell about 7.1% to $96.72 a barrel, back below $100, while Brent sank about 7.6% to $104.82, according to midday market reports.
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The move was framed as the steepest one-day drop for oil since late July. Lower energy costs helped pull Treasury yields down and supported interest-rate-sensitive corners of the equity market. Airlines and consumer names caught a bid as jet-fuel cost fears eased, while ExxonMobil, Chevron, and other energy majors pulled back between roughly 3% and 5%.
On the equity tape, the Dow Jones Industrial Average was higher by about 1% in afternoon trade in some tallies, even as the broader session turned unsteady after last week's tech-led sell-off. The S&P 500 was little changed to modestly higher depending on the snapshot, and the Nasdaq drifted mixed.
Traders will watch whether diplomacy headlines stick. Oil has yo-yoed for weeks on Middle East risk premium; a sustained thaw would keep pressure on crude and on energy equities, while a breakdown in talks could reverse today's slide just as quickly. For now, the tape is pricing a softer supply-risk premium and a friendlier input-cost backdrop for transporters and retailers.
Sources
- CNBC — midday movers — Energy stocks dipped as oil declined; ExxonMobil, Chevron, Valero pulled back between 3% and 5%.
- AP News — stocks and oil — U.S. stocks unsteady after last week's sell-off; oil prices fall sharply on diplomacy hopes. S&P 500 edged 0.1% higher; Dow up 431 points or 0.8% as of 2:07 p.m. ET; Nasdaq −0.2%.
- Market reports via Benzinga tape summary — WTI −7.1% to $96.72; Brent −7.6% to $104.82; steepest one-day drop since July 27; Dow +1% toward 52,308; S&P 500 +0.6% to 7,626 in that snapshot. WTI back below $100.