Oil slips as Trump rules out new strikes in stalled Mideast talks

Oil prices dropped on Monday morning after President Donald Trump suggested that further military strikes against Iran were unlikely. This statement came as diplomatic efforts to end the conflict appeared to have stalled.

At 5:25 a.m. ET, Brent crude futures fell by 0.75% to reach $97.58 per barrel. U.S. West Texas Intermediate futures for December delivery also declined, trading 0.42% lower at $90.45.

Secretary of State Marco Rubio spoke with reporters in Florida on Sunday evening before departing for the G7 foreign ministers' meeting in Paris. He stated that the two sides remain far apart on negotiations.

Rubio noted that Tehran proposed shortening the timetable for restarting talks from seven days to two. He described the Iranian demands as not just unacceptable but outrageous and ridiculous.

In a prior interview with CNN, Trump said that a resumption of hostilities was unlikely if talks to constrain Iran's nuclear ambitions and reopen the Strait of Hormuz could progress. He expressed a preference for diplomatic solutions, though he acknowledged that this is not always possible.

The conflict has lasted more than eight months. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that Tehran wants U.S. sanctions lifted and the war ended on all fronts before negotiations begin.