Oil futures extended losses after President Donald Trump again signaled the potential end to the Iran war that's roiled markets, even as the Strait of Hormuz remains largely closed and more US troops arrived in the region.
Brent oil futures fell below $100 a barrel for the first time in a week, while West Texas Intermediate was trading near $98 a barrel. Stock markets also jumped.
Trump told reporters that the US could leave Iran within two to three weeks, and indicated an agreement with Tehran may be reached but wasn't necessary for the war to end.
The president will give an address to the nation at 9 p.m. Eastern time on Wednesday to provide an update on Iran, White House Press Secretary Karoline Leavitt said.
An Iranian missile strike on a base in Saudi Arabia damaged several military jets and destroyed a valuable E-3 Sentry early warning and control aircraft -- the first known combat loss for that type.
The roughly $300 million plane was hit in an attack on Prince Sultan Air Base in recent days, according to a person familiar with the matter asking not to be identified discussing sensitive military operations. Unverified photos of the jet showed its tail completely severed, rendering it unflyable.
The so-called AWACS plane, which has a rotating radar disc mounted above its fuselage, is used to spot distant threats and direct other combat aircraft. It provides a powerful advantage, and although the US operates more than 30 and can replace the loss, the destruction of one is costly.
"It's a big deal," said Peter Layton, a former Royal Australian Air Force officer and a visiting fellow at the Griffith Asia Institute. "It highlights that large aircraft are vulnerable on the ground and need active defense. That is hard to do all the time; sometimes it fails."
US Central Command didn't immediately respond to a request for comment on the loss of the aircraft, which was earlier reported by Air & Space Forces Magazine.
Three other Boeing Co. Sentry aircraft have been lost in accidents since it was introduced in the late 1970s. Like the KC-135 Stratotanker, the plane is based on the airframe that also produced the 707 passenger jet.
The US has not yet lost any crewed planes to enemy fire in the air during the campaign against Iran. More than a dozen MQ-9 Reaper strike drones have been shot down, however, showing that airspace over the country remains dangerous.
US bombers, including B-52s and B-1Bs, continue to use long-range strike cruise missiles to strike targets in Iran safely.
Attacks over the weekend featured some of the largest attacks since the war's start, with the UAE and Bahrain both reporting strikes of 20 ballistic missiles each on Saturday alongside Shahed-type weapons.
Iran has launched more than 1,400 ballistic missiles at targets around the region, along at least 4,000 Shahed rudimentary cruise missiles. An earlier strike damaged several KC-135s on the ground at an airbase.