Oil Tumbles More Than 4% on Hopes for a U.S.-Iran Deal

Crude oil fell sharply on Monday as investors bet on a diplomatic breakthrough between Washington and Tehran. West Texas Intermediate dropped about 4.2% to $99.77 a barrel, while Brent slid roughly 4.3% to $108.68.

Secretary of State Marco Rubio said the president prefers negotiations over further military action, and two days of Qatar-mediated talks have kept hopes of an agreement alive. Some reports, however, suggest both sides could prepare for military options after the U.S. midterm elections.

Lower fuel prices would offer relief to fuel-sensitive sectors such as airlines and car rental companies, which have been pressured by months of elevated energy costs. Energy producers, by contrast, would face a less supportive backdrop if the decline holds.