November 2, 2026: Global oil prices fell more than 3% on Monday as Qatar-mediated diplomatic efforts raised hopes of ending the ongoing US-Israeli war with Iran, easing concerns over potential disruptions to energy supplies from the Middle East.
Brent crude futures dropped $3.68, or 3.2%, to $109.75 per barrel, while US West Texas Intermediate (WTI) crude declined $3.43, or 3.3%, to $100.69 per barrel, according to Reuters.
The decline followed renewed diplomatic engagement between Iranian and Qatari officials, who held discussions for a third consecutive day aimed at creating conditions for a possible agreement to end the conflict.
The prospect of a diplomatic breakthrough helped ease the geopolitical risk premium that had driven oil prices higher amid concerns about disruptions to crude shipments from the Gulf region.
Brent crude had ended October at its highest level in six months, supported by fears that tensions between Washington and Tehran could intensify following the US midterm elections scheduled for Tuesday.
However, continued negotiations mediated by Qatar, combined with the absence of major military escalation over the weekend, reduced immediate concerns about further disruptions to regional energy supplies.
Market analysts said the latest decline also reflected a technical correction following the sharp increase in crude prices during the previous week.
Tim Waterer, chief market analyst at KCM Trade, said oil markets were experiencing a temporary pullback after the recent rally.
He noted that expectations of diplomatic progress remained intact, while the absence of significant military developments over the weekend had reduced immediate upward pressure on prices.
The developments come as international energy markets closely monitor negotiations involving Iran and Qatar for indications of a possible reduction in hostilities.
The Middle East remains central to global oil supplies, with shipping routes through the Persian Gulf and the Strait of Hormuz playing a critical role in transporting crude oil and petroleum products to international markets.
Any progress towards ending the conflict could help reduce uncertainty surrounding energy shipments, while renewed military escalation could quickly reverse the recent decline in prices.
Despite the latest fall, both Brent and WTI crude remained above $100 per barrel, reflecting continued concerns over regional security and the stability of global energy supplies.
Oil traders are expected to closely follow further diplomatic developments, with the direction of prices likely to remain sensitive to progress in negotiations and changes in the regional security situation.