Oil prices fall nearly 7% as geopolitical tensions ease and OPEC+ agrees to restore production cuts, increasing supply.
West Texas Intermediate crude oil extended losses, trading near $79.30 per barrel in Asian markets Monday, down nearly 7% from prior levels. The decline followed signals of progress in Middle East peace talks, including a reported request from Iran and regional nations to delay conflict amid proposed agreements to reopen key shipping routes and address nuclear threats.
OPEC+ producers approved a modest increase in production quotas, completing the phased restoration of 2023 supply cuts. The move leaves room for further output hikes once regional stability improves, though shipping disruptions in the Strait of Hormuz and additional tanker attacks underscore lingering risks.
Market sentiment remained cautious as strategists warned of deteriorating geopolitical conditions, with recent missile exchanges between the U.S. and Iran adding to volatility.