Oil prices fell sharply Monday, Nov. 9, with Brent crude hitting its lowest level since early September after President Donald Trump said renewed U.S. strikes on Iran were "highly unlikely" as long as talks progress.
Brent crude futures were down $5.05, or 5.2%, at $93.27 a barrel, and U.S. benchmark West Texas Intermediate lost $4.12, or 4.5%, to $86.71, CNBC reported. Brent plunged 16% last week, its steepest weekly drop since the start of the COVID-19 pandemic.
What's driving it
Trump was set to meet Qatar's prime minister on Monday. Iran was reviewing proposals from Qatar, the chief mediator, aimed at bridging differences with the U.S. over Tehran's nuclear program, the Associated Press reported. Brent had been above $112 at the start of the month.
Tensions have not gone away. Ships were attacked near the Strait of Hormuz, CNBC reported, and Saudi Arabia intercepted missiles on Sunday, with debris damaging an Aramco building in Riyadh, the AP said. Secretary of State Marco Rubio called some of Iran's demands "outrageous and ridiculous."
At the pump
Oil analyst Tom Kloza said the AAA national average for gasoline stood at $3.999 a gallon and was set to dip below $4, ending a 113-day stretch above that mark, the AP reported. Related: Trump meets Qatar's prime minister on Iran talks.