LAGOS — Global crude prices plummeted over 4% on Monday as persistent diplomatic gridlock between the United States and Iran shattered market expectations for a near-term geopolitical resolution.
Brent crude futures sank $4.64, or 4.48%, to settle at $98.90 a barrel. Meanwhile, U.S. West Texas Intermediate dropped $4.42, or 4.58%, to close at $92.18 a barrel.
The aggressive sell-off triggered liquidations after automated support thresholds breached. Energy traders rapidly unwound long positions, heavily compounding the multi-dollar daily loss across both global benchmarks.
Diplomatic friction worsened as Washington and Tehran remained deeply at odds over a nuclear peace deal. The impasse extended tight international sanctions, keeping Iranian output offline.
“The premium built on diplomatic breakthroughs evaporated instantly today,” noted Marcus Vance, chief energy strategist at Vanguard Commodities. “Gridlock forced a harsh technical correction below key psychological baselines.”
This decline reverses recent market momentum driven by tight global inventories. Analysts warn that prolonged diplomatic friction risks worsening supply volatility across vital Middle Eastern shipping corridors.
Last week, Brent crude was trading above $111 a barrel, WTI Crude $108 a barrel, following a drone strike on the United Arab Emirates’ peaceful Barakah Nuclear Power Plant.
