Oil prices plunged nearly 7% on Monday after Washington and Tehran both signaled they would give diplomacy a chance.

Brent traded at $105.60 per barrel, down $7.85, and WTI fell $7.20 to $96.92. Iranian President Masoud Pezeshkian said the Supreme Leader had granted the government “certain authorities” over the peace talks and that Tehran “will try to resolve the problem with dialogue,” state media reported.