Global benchmark crude prices are indicating a sharp lower open for Monday’s Asian trading session as news of a tentative diplomatic discussion between the United States and Iran significantly cooled geopolitical risk premiums over the weekend.
Indicative pricing on retail trading platform IG showed its “Weekend Oil – US Crude” contract falling 5.25%, or 471.2 points, to trade around 8,511.2—suggesting West Texas Intermediate (WTI) futures are set for immediate downside pressure when formal market hours resume on Monday.
The sell-off follows reports that the Pentagon has paused its 13-day bombing campaign against Iranian targets over the weekend. Both Washington and Tehran have signaled a willingness to pause hostiles and give regional diplomatic initiatives room to breathe.
Addressing the developments on Sunday, U.S. Ambassador to the United Nations Mike Waltz told Fox News that President Donald Trump is allowing talks to proceed, signaling a tactical window for negotiations. While details remain sparse, senior U.S. officials emphasized that while military pressure can be reinstated, diplomatic engagement remains the preferred path if Iran engages in good faith. Still, he quoted Trump that the U.S. is locked and loaded if Iran continues its aggression.
In response, Iranian officials indicated a reciprocal stance. Al Arabiya reported via a senior Iranian official that Tehran will hold off on further military operations provided U.S. strikes remain suspended, though Iranian leadership cautioned that it remains watchful over Washington’s long-term motives.
The sudden de-escalation follows formal responses submitted by both nations to a joint mediation proposal led by Pakistan and Qatar. Sources familiar with the talks note that Tehran confirmed to Pakistani negotiators that it has not walked away from the draft memorandum of understanding, expressing readiness to resume multilateral discussions in Geneva, Doha, or Islamabad.
