Contacts to end war continue despite talks yielding no breakthrough, Iran says

A major breakthrough remained elusive in efforts to end the eight-month US-Iran conflict, although Iran said discussions were continuing, Reuters reported on Monday. Several days of talks between Iranian officials and Qatari mediators had produced revised proposals without securing significant progress.

Iranian Foreign Minister Abbas Araqchi said: "Consultations through mediators are very intensive. We have presented our conditions and proposals and everything depends on the political rationality of Washington,"

The proposal Iran submitted in September to end the war continued to underpin discussions, according to Iran's Foreign Ministry spokesperson Esmaeil Baghaei. He also confirmed comments attributed to Foreign Minister Abbas Araqchi on Saturday indicating that the plan could be shortened.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Baghaei said: "The basis of dialogue and talks between Iran and the US via mediators is still Iran’s seven-step proposal, which is now condensed, making it possible to implement it within two days,"

An agreement to end the war "could happen.", US President Donald Trump said on Monday, adding that Iran wanted a deal. No details were immediately provided by Trump.

How is the market responding?

West Texas Intermediate (WTI) is trading at $95.50 at the time of writing, a gain of 0.51% for the day.

WTI Oil: Key Questions Answered

What defines WTI Oil?

Among the crude oil varieties traded internationally, WTI, or West Texas Intermediate, is one of three major types alongside Brent and Dubai Crude. Its relatively low gravity and sulphur content earn it the descriptions “light” and “sweet”, respectively. Regarded as a high-quality oil, it is easy to refine. Produced in the United States, WTI is distributed through the Cushing hub, known as “The Pipeline Crossroads of the World”. WTI serves as an oil-market benchmark, with its price regularly cited in media reports.

Which factors shape WTI Oil prices?

Supply and demand underpin WTI Oil prices, as they do for other assets. Stronger global growth can lift demand, while weaker growth can have the reverse effect. Supply disruptions arising from political instability, wars or sanctions can also affect prices. Another major influence is OPEC, a grouping of leading oil-producing countries whose decisions help shape the market. With oil traded predominantly in US Dollars, the currency's value also matters for WTI Crude Oil prices: a weaker US Dollar can make oil more affordable, while a stronger one can do the opposite.

Why do inventory figures affect WTI Oil prices?

WTI Oil prices respond to the weekly oil inventory releases from the American Petroleum Institute (API) and the Energy Information Agency (EIA), as stock movements signal shifts in supply and demand. Falling inventories can point to stronger demand and lift oil prices; rising stocks can indicate greater supply and weigh on prices. The API publishes its report every Tuesday, followed by the EIA the next day. The two sets of figures are generally close, with a difference of no more than 1% in 75% of cases. As the EIA is a government agency, its data is regarded as more reliable.

Why do OPEC decisions matter for WTI Oil prices?

At meetings held twice a year, the 12 oil-producing nations in OPEC (Organization of the Petroleum Exporting Countries) jointly set production quotas for member countries. These decisions frequently influence WTI Oil prices: lower quotas can restrict supply and lift prices, whereas an increase in production can have the reverse effect. The broader OPEC+ grouping brings in ten additional non-OPEC members, with Russia the most prominent among them.