Oil prices reversed course from a week ago, when a sharp escalation in fighting between the U.S. and Iran worsened worries about global oil supplies. The price of Brent crude, the international standard, dropped 6.3% to settle at $85.87 a barrel for October delivery. Prices surged to over $100 a barrel last week before easing.
That is according to an Associated Press report.
U.S. crude oil for September delivery fell 7.5% to settle at $82.61 a barrel.
The war between the U.S. and Iran has sharply curtailed, and at a times halted, traffic through the vital Strait of Hormuz. That has had a ripple effect throughout the world’s economy. Gasoline prices have surged and shipping costs for most goods are rising, with businesses typically passing those costs along to households.
In a separate report from AP, Mediators have achieved progress in getting the United States and Iran back to negotiations, regional officials said Monday, after both sides paused attacks following a period of rapidly escalating tensions. But scattered attacks by armed groups across the region underscored the lingering tensions.
Saudi Arabia said it had shot down drones fired by Iran-backed militias in Iraq that had targeted its petroleum facilities. Iran-backed Houthi rebels in Yemen meanwhile claimed to have attacked Saudi oil facilities as part of a separate but related conflict. It was unclear if they referred to the same attack.
Neither the U.S. nor Iran reported carrying out any attacks for three days — a respite after about two weeks of sustained bombardments that led to increasing fears of a return to all-out war.
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