● Oil Tumbles Over 6% on Iran Diplomacy Hopes

Crude sold off hard on Monday as hopes for a diplomatic deal with Iran erased the war-risk premium built into prices since the US midterms. West Texas Intermediate fell 6.5% to $97.35 a barrel and Brent dropped 6.4% to $106.20, pulling the $USO oil ETF down with it, after Secretary of State Marco Rubio said Trump would rather resolve the standoff peacefully and Iran's foreign minister said a deal is possible if Washington "demonstrates goodwill." The relief rally clashed with Iran's supreme leader Mojtaba Khamenei, who called on forces to answer threats with an "immediate, impactful, and geographically unrestricted response." Markets are pricing diplomacy over escalation, for now.