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Oil prices fell by more than 7% on Monday, amid signals from Iran indicating openness to peace negotiations with the United States

Raluca Ioana Draghici

2 November 2026, 21:00

Economy

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Oil prices fell by more than 7% on Monday after negotiations between Iranian officials and mediators from Qatar fueled hopes of an end to the conflict with the United States and Israel and reduced disruptions to crude oil supplies from the Middle East.

Brent crude oil futures fell 7.61% to $104.80 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 7.23% to $96.59 per barrel.

The declines accelerated after Iranian President Masoud Pezeshkian announced that Supreme Leader Ayatollah Mojtaba Khamenei had granted the government authority to conduct peace negotiations. According to state media, Tehran is seeking to resolve the conflict through dialogue.

Iranian negotiators have been discussing the matter with Qatari officials for several days, and a proposal for a possible agreement with the United States is under consideration. Foreign Minister Abbas Araqchi said Iran remains prepared for both diplomacy and defense.

The oil market is reacting strongly to developments in the region. The conflict has disrupted shipping through the Strait of Hormuz, while nearly one billion barrels have reportedly been withdrawn from global inventories. Supply risks remain high because of attacks on oil tankers. Goldman Sachs warns that Brent could reach $140 per barrel in 2027 if production in the Gulf remains reduced.

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Context: oil had previously risen amid attacks around the Strait of Hormuz and supply concerns

Before Monday’s decline, oil prices had risen sharply in the preceding days following attacks launched by the United States against targets in Iran. Brent crude rose to $94.52 per barrel, while WTI reached $90.03 per barrel, amid tensions in the Middle East and risks to transport routes.

Concerns were also fueled by reported incidents in the region, including attacks on vessels in the Persian Gulf and near the Strait of Hormuz, which contributed to higher transport costs and fears of supply disruptions. At the same time, markets monitored statements regarding the scale of the incidents and the reactions of the Iranian and American authorities, which influence perceptions of geopolitical risk.