Oil futures fell in American trade to early October lows as the dollar index inched up, as the US market shuts down for the Columbus Day bank holiday. 

As of 05:59 GMT, US crude futures due in November rose 0.42% to $74.03 a barrel, while Brent December futures rose 0.57% to $83.68 a barrel, as the dollar index climbed 0.20% to 95.82. 

Reports came out that the US administration is studying possible exemptions for the ban on Tehran's oil exports, expected to go into full effect in November, out of fear of causing a surge in prices due to supply shortages. 

Iranian oil minister Bijan Namdar Zangeneh warned in earlier remarks that Saudi Arabia won't be able to compensate for the expected drops in supplies due to US sanctions on Iran, causing market imbalance. 

Last week, US national security adviser John Bolton said the Trump administration is aiming to completely stop Iranian oil exports, calling for the entire world to refrain from purchasing Iranian oil to heap pressure on the country regarding their nuclear program and interference with the region's internal affairs. 

Otherwise, Russian energy minister Alexander Novak said last week the global oil market is relatively balanced, even though existing uncertainties could still push prices higher, mainly because of US sanctions on Iranian oil exports. 

Oil prices are up 20% so far this year as OPEC and Russia carry on their agreement to cut global output to easy a previous supply glut, while the US withdrew from the Iran deal and sanctioned their oil exports.

US Oil Rig Count 

Baker Hughes, a US oil services company, reported a drop of two rigs in the oil rig count to a total of 863 rigs, the third weekly increase in a row. .

US output has recently risen to the second highest in the globe, taking the place of Saudi Arabia while Russia continues at the top with 11.21 million bpd. 

Sterling slid away from September 27 highs against the greenback in American trade, following earlier developments in Britain, and as the US market shuts down for the Columbus Day bank holiday. 

As of 05:25 GMT, GBP/USD fell 0.36% to 1.3073, with an intraday low at 1.3028, and a two-week high at 1.3134. 

UK government spokesperson said there are still lots of unresolved issues regarding Brexit negotiations with the European Union, pointing in particular to the border with Ireland issue.

The spokesperson implored the European Union to amend its position on Brexit in order to facilitate a deal and reach common ground. 

Euro fell in American trade to August 20 lows against the dollar, following earlier data from the euro zone and as the US market shuts down for the Columbus Day bank holiday. 

As of 04:41 GMT, EUR/USD tumbled 0.41% to 1.1477, with an intraday low at 1.1460, and a high at 1.1535. 

Earlier German data showed industrial production fell 0.3%, compared to a 1.3% decline in June, while analysts expected a 0.4% increase. 

The Sentix index tracking consumer confidence in the euro zone receded to 11.4 as expected from 12.0. 

Combative Italian deputy prime minister Matteo Salvini assured investors that an exit from the European Union is not included within the government's agenda, days after describing European Commission President Jean Claude Juncker as the enemy of Europe.  

US Stock indices opened the first session of the lower, with the tech sector leading the decline on Wall Street amid a lack of data today due to the Columbus Day bank holiday.  

Upbeat US labor data released last week all but paved the way for continued policy tightening by the Federal Reserve, while US 10-year treasury yields surged to seven-year highs at 3.23, weighing on stocks. 

As of 01:10 GMT, Standard and Poor's 500 slid 0.67%, or 19.34 points to 2,866.23, while Dow Jones swooned 0.66%, or 174.36 points to 26,272.69. 

Tech-heavy NASDAQ sank 1.43%, or 111.81 points to 7,676.64.