Back and forth, Oil prices fall as mediators propose 10-day Iran-U.S. ceasefire

Oil futures dropped on Monday while equity markets climbed after Reuters reported that mediators proposed a 10-day cessation of strikes between Iran and the United States aimed at reviving an interim deal reached last month.

A senior Iranian official told reporters that mediators presented Iran with a proposal to reduce tensions through a 10-day ceasefire. The pause would provide time to explore ways to restore the interim agreement between the two nations.

S&P 500 futures gained 0.55% following the news. Brent crude traded below $87 per barrel as oil markets responded to the potential de-escalation.