The benchmark oil grade declined on Monday as hopes for a diplomatic resolution to the conflict between the U.S. and Iran offset concerns over regional energy supplies. Brent crude futures fell to $115.16 as of 0018 GMT Monday, retreating from a peak of nearly $117 reached late last week as the market reacted to news of Qatari mediation efforts.
Brent had settled at $116.72 per barrel on Oct 23, marking a 6% gain for the week amid fears of renewed U.S. strikes on Iran. The surge in energy prices, which pushed U.S. crude futures up 2.3% last week, revived inflation concerns and widened credit spreads for fragile borrowers, with CCC-rated debt carrying yields near 18%.