International crude oil futures fell more than 6% during intraday trading on the 2nd as market optimism grew over negotiations between the United States and Iran.
As of 9:30 a.m. Eastern Time on the 2nd, light crude futures for December delivery on the New York Mercantile Exchange hit a low of $97.12 per barrel, down $7 from the previous session's closing price, a decline of 6.72%. London Brent crude futures for January 2027 delivery fell to a low of $105.86 per barrel, down $7.57, or 6.67%.
According to a report by the Islamic Republic News Agency on the 2nd, Iranian President Pezeshkian said that day that Iran's Supreme Leader has granted the government "certain authority" regarding peace negotiations, and Iran is working to resolve issues through dialogue. Iranian Foreign Ministry spokesman Baghaei said the same day that relevant dialogue between Iran and the US is still ongoing. If the United States agrees to fulfill Iran's demands, the relevant plan could be launched within two days at the earliest, security in the Strait of Hormuz would be restored, and the Iran-US negotiation process would then begin.
US Secretary of State Rubio recently said that US President Trump prefers to resolve the Iran issue through diplomatic means rather than the use of force. However, Trump has not yet made a decision on this matter.
Naeem Aslam, chief investment officer of British investment firm Zaye Capital Markets, believes that the drop in oil prices reflects improved expectations surrounding diplomatic negotiations with Iran, and newly disclosed progress related to the talks has led the outside world to believe that the possibility of regional hostility and energy transportation disruptions ultimately easing has increased.