Oil prices fall due to diplomatic promotion between Iran and the US

Oil prices fell on Monday on news that both the United States and Iran are exploring diplomatic options for the conflict.

International benchmark futures brent crude oil Prices for January delivery fell 3.31% to $109.67 per barrel. us West Texas Intermediate Futures In December, the price fell 3.34% to $100.64 per barrel.

US Secretary of State Marco Rubio said President Donald Trump does not want to use military force and wants to resolve the Iran war “diplomatically.”

“President Trump hasn’t made a decision yet. What he’s expressing to you is incredible confidence that if we need to do something militarily, we have the ability to do it. The fact is, we have everything we need to be successful. But we want to do it peacefully,” Rubio told reporters over the weekend.

According to Al Jazeera, Iranian officials also indicated after two days of Qatar-mediated talks that a deal was still possible as long as the demands were concretely implemented.

The news comes in the wake of reports that both the United States and Iran are preparing for further military attacks after the midterm elections.

The United States is preparing for possible new military action after the November 3 midterm elections, according to reports in the Wall Street Journal and the New York Times.

Iranian Supreme Leader Mojtaba Khamenei on Saturday called on Iran’s armed forces to respond to “threats of all levels and types” with “immediate, impactful and geographically unrestricted responses.”

Concerns about the conflict in the Middle East and Ukraine are likely to remain in the short term.

“Attacks against ships and refineries in the Middle East and against civilians in Ukraine continue, doing little to inspire confidence in the prospect of a continuation of the ceasefire in the foreseeable future,” said Tamas Varga, an analyst at PVM Oil Associates.

“Nevertheless, hope springs eternal,” Varga added.

—CNBC’s Lim Hui Jie contributed to this report.