Global oil prices saw a sharp decline of over 7% during trading on Monday (November 2, 2026), following talks between Iranian and Qatari officials that raised hopes for a potential end to the conflict involving the United States (US), Israel, and Iran. This diplomatic development has sparked optimism that stability in Middle Eastern oil supplies could be restored, easing investor concerns regarding the risk of disruptions to global energy distribution.
Brent crude oil contracts fell by US$8.66, or 7.63%, to close at US$104.77 per barrel. Meanwhile, West Texas Intermediate (WTI) crude dropped by US$7.66, or 7.36%, to US$96.46 per barrel. This decline reflects a reduction in the geopolitical risk premium that had previously bolstered oil prices amid the prolonged conflict in the Middle East.
In highly volatile trading, Brent reached a daily low of US$103.28 per barrel, while WTI fell to as low as US$95.15 per barrel. Selling pressure intensified following signals that Iran is opening the door to resolving the conflict through diplomatic channels, prompting market participants to reconsider the prospect of a recovery in oil supplies from the Persian Gulf region.
Iranian President Masoud Pezeshkian stated that Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, has granted the government the authority to pursue peace talks. According to Iranian state media, Pezeshkian emphasized that Tehran intends to resolve issues through dialogue, though he provided no further details regarding the scope or terms of such negotiations.
Meanwhile, an Iranian negotiating team has been engaged in discussions for several days with Qatari mediators, seeking a path out of the conflict involving the United States and Israel. Qatar’s involvement as a mediator has drawn market attention, as it is seen as a potential pathway to reopening diplomatic communication and reducing the risk of a broader military escalation.
Previously, Brent crude prices closed out October at a six-month high, driven by concerns that the Middle East conflict could intensify following the United States midterm elections on Tuesday (November 3, 2026). The threat of further military operations and potential disruptions to oil shipments through the Strait of Hormuz kept upward pressure on energy prices throughout the preceding month.
From Washington, U.S. President Donald Trump stated on Monday that Iran has shown a willingness to reach an agreement to end the war. Trump suggested that a peace deal could potentially be achieved, though there is no certainty yet regarding the timeline or the specific terms that both sides might agree upon.
On Monday evening, Qatari mediators traveled once again to Tehran to meet with Iranian Foreign Minister Abbas Araghchi. The meeting addressed the possibility of an agreement between the United States and Iran, continuing diplomatic efforts that have been underway over the past few days. However, market participants are still awaiting concrete outcomes from these discussions.
Raymond James analyst Pavel Molchanov noted that signs of progress in U.S.-Iran negotiations are a key factor driving the decline in oil prices. Nevertheless, he cautioned that investors should remain prudent, as previous diplomatic initiatives have occasionally sparked optimism without leading to a lasting resolution. Given this situation, oil prices may continue to experience high volatility until there is tangible progress toward a peace agreement and the normalization of energy supplies from the Middle East.
Source: Newsmaker.id