Brent Drops to $108 as Trump Gives Iran Diplomacy More Time
Brent crude fell about 4.5% to $108 on Monday morning. The new development is an Axios report: President Trump told Israeli Prime Minister Netanyahu he wants more time for diplomacy before any new strikes. Brent, which settled at $113.43 on Friday, has now slipped below $110.
Iran is keeping the door open too. Foreign Minister Abbas Araghchi said Qatar-mediated talks are making progress but have not concluded. Spokesman Baghaei called the cut in the Strait of Hormuz proposal from seven days to two a sign of goodwill, adding that the decision now rests with the US.
The risk has not gone away. According to Axios, Netanyahu is pressing for strikes soon after Tuesday's midterm elections. Goldman Sachs raised its December Brent forecast to $105 from $90 and sees a risk premium of about $27 in the price.
The pullback in oil gave futures room to recover after Friday's tech selloff. Nvidia rose about 1% in premarket trading and Alphabet 0.7%. The market is reading this morning not as peace news, but as a break on energy costs.
The day's second big story came from semiconductors. Marvell is buying optical connectivity maker Lumentum in an all-stock deal worth about $115B. holders will receive 4.5 shares for each share they own.
