Brent Crude Drops to $110.24 as U.S.-Iran Talks Gain Traction

International oil prices fell sharply on Monday, with Brent crude dropping 2.8% to $110.24 per barrel. U.S. benchmark crude lost 3.1% to $100.85 per barrel. The decline followed weekend remarks from Iran’s top diplomat regarding negotiations currently taking place in Qatar. These talks aim to reopen the Strait of Hormuz within two days if the United States meets specific conditions.

Asian equity markets presented a mixed picture amid shifting investor sentiment. Japan’s Nikkei 225 index slipped 0.3% to 63,081.86, reversing early gains. The index has fallen more than 7% over the past month. In South Korea, the Kospi index rose 2.2% to 5,859.08, though it remains down more than 16% over the same period. Australia’s S&P/ASX 200 lost 0.6% to 8,856.50.

Sector performance varied based on corporate earnings and balance sheet strength. SoftBank Group shares fell 1.6% in Tokyo. Kioxia Holdings plunged 15.8% after its earnings forecasts disappointed analysts. Conversely, memory chipmaker SK Hynix jumped 3.8% in Seoul, while Samsung Electronics added 1.8%. In Taiwan, the Taiex index was 0.7% lower, with TSMC shedding 1.7%.

Investors are scrutinizing the financial returns of massive artificial intelligence infrastructure projects. Apple is scheduled to report earnings later on Monday. Recent results from Alphabet Inc. and Amazon have raised questions about whether high AI spending will yield profits quickly enough. Sunil Tirumalai of UBS Global Research noted that some cracks have appeared in the sector. He stated that the market is increasingly focused on whether current spending levels can generate adequate financial returns.

U.S. stock futures advanced on Monday after Wall Street posted its worst day since June on Friday. The S&P 500 fell 1.8% and the Nasdaq composite declined 2.9% during that session. The Dow Jones Industrial Average slid 1.1%. Market participants are also monitoring Tuesday’s U.S. midterm elections, where voters have expressed concern over AI data centers and inflation.

In China, the Shanghai Composite index gained 1.1% to 3,638.03. This rise occurred despite new data showing factory activity returning to contraction territory in October. Chinese media reports indicate the central bank and securities regulatory body met with financial institutions on Monday to discuss market support measures. The Hang Seng index in Hong Kong rose 0.5% to 23,411.49, while India’s Sensex climbed 1.3%.

Currency markets moved modestly. The U.S. dollar strengthened against the Japanese yen, rising to 157.83 from 157.49. The euro traded at $1.1186, up from $1.1160. Diplomatic efforts to prevent a return to all-out war in the region continue to influence energy pricing expectations.