Crude and RBOB futures plunged more than 6% during the session, while ULSD futures retreated by roughly 4%. The December West Texas Intermediate contract dropped $6.75 to $97.37/bbl, and January Brent crude fell $7.32 to $106.11/bbl. RBOB futures slid by more than 20cts/gal, and ULSD contracts saw losses nearing the 20ct mark.
In section Market Quotes
Diplomatic Hopes Trigger Sharp Oil Sell-Off
Signs of a potential thaw in the U.S.-Iran standoff sent energy markets into a tailspin Monday. With officials from both nations signaling a willingness to negotiate, traders shed risk, erasing weeks of gains that had been fueled by fears of imminent military escalation across the Persian Gulf.
This shift in sentiment follows weekend comments from U.S. Secretary of State Marco Rubio, who noted President Trump’s preference for a diplomatic resolution. Iranian Foreign Minister Abbas Araghchi echoed this potential for compromise, suggesting an agreement remains within reach. The market is currently balancing the prospect of a cooling geopolitical risk premium against the lingering threat to energy supply routes. Rania Gule, senior market analyst at XS.com, expects continued volatility with a corrective bias as long as the diplomatic window remains open.
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