Global oil prices began to stabilize during Tuesday’s (Nov 3, 2026) trading session, following a sharp decline of over 7% in the previous session. West Texas Intermediate (WTI) crude hovered around US$96.32 per barrel, while Brent closed at US$104.77 per barrel. This drop was driven by rising market optimism regarding the possibility of peace negotiations between the United States (U.S.) and Iran.
Positive sentiment emerged after Iranian President Masoud Pezeshkian stated that his administration had been granted broader authority to engage in negotiations with the U.S. Meanwhile, President Donald Trump signaled diplomatic progress, indicating that he would not immediately pursue further attacks against Iran following the U.S. midterm elections on Tuesday.
The decline in oil prices also comes amid mounting political pressure on Trump ahead of the elections. Surging energy costs—a consequence of the conflict in the Middle East over the past nine months—have placed a heavy burden on the American public. The prospect of a de-escalation in the conflict has also weighed on other energy markets; European natural gas prices fell by nearly 9%, and U.S. heating oil recorded its steepest decline in six months.
Nevertheless, the prospect of reaching a peace agreement remains uncertain. Iran is demanding the lifting of port blockades, the easing of sanctions, and the release of frozen assets as conditions for fully reopening the Strait of Hormuz. Conversely, the U.S. continues to insist that Iran make concessions regarding its nuclear program. These conflicting demands remain the primary obstacle in the negotiation process.
As noted by Newsmaker, the sharp drop in oil prices reflects market optimism toward a diplomatic path, though it does not necessarily mean the risk of conflict has ended. Should the negotiations show progress, oil prices could face further downward pressure as concerns over potential supply disruptions subside. Conversely, a breakdown in negotiations or the emergence of new attacks could trigger a surge in oil prices, given that geopolitical tensions in the Middle East remain extremely high.