Oil prices fall 6% on hopes of US-Iran peace talks
Brent crude dropped to its lowest level since 16 October, lifting airline shares and easing government borrowing costs.
Key facts
Story- Brent crude fell more than 6% on Monday, 2 November, on renewed hopes of US-Iran peace talks.
- The benchmark dropped to as low as $105.55 a barrel, its lowest since 16 October.
- Airline shares rose and government borrowing costs eased as the price fell.
Oil prices fell by more than 6 per cent on Monday after fresh hopes emerged that talks could end the conflict between the United States and Iran. Brent North Sea crude, the main international benchmark, dropped to as low as $105.55 a barrel. That is its lowest level since 16 October.
The price fall had wider effects on markets. Shares in airline companies rose as investors expected cheaper fuel. Government borrowing costs also eased.
Brent has been trading at elevated levels since the Iran war began. Fuel prices have been a major concern for businesses and consumers across the world, and any sustained easing would be closely watched.
India imports most of its crude oil, so global prices feed directly into petrol and diesel costs, airline fares and the government's fuel bill. A lasting fall would ease pressure on these.
It is not yet known whether a breakthrough in talks has been agreed or when any talks would take place. It is also not yet known how long the lower prices might last. Whether the fall holds will depend on whether the hopes of a peace deal are met.
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