Oil price tumbles to a two-week low as Iran says it could reopen the Strait of Hormuz within two days

Brent crude crashed more than 10 per cent to below $105 a barrel on Monday after Iran's supreme leader granted his government new powers to negotiate, and a draft peace proposal circulated after Iranian negotiators left Doha talks over the weekend. Tehran has put a two-day timetable on reopening the Strait of Hormuz if Washington meets its demands, including sanctions relief and a reduced US military footprint in the region. The Dow Jones jumped 566 points and gilt yields fell to a six-week low as investors priced in the prospect of easing Middle East supply disruptions ahead of Tuesday's US midterm elections.

Iran's Foreign Minister Abbas Araghchi warned a deal hinges on the US showing 'goodwill.'

Goldman Sachs cautioned that oil prices could still reach $140 a barrel next year should regional output fail to recover.

At a Sunday campaign stop in Iowa, Trump threatened that Iran would face 'the hammer' unless peace progress was made.