Oil Prices Fall Over 1% as Iran Diplomacy Raises Hopes for De-escalation
Published : 11:11, 2 November 2026
International oil prices fell by more than 1% on Monday as hopes grew that diplomatic efforts involving Tehran and Qatari officials could help end the ongoing conflict involving Iran, the United States and Israel. However, uncertainty persists in the energy market amid fears that the conflict could intensify again.
According to a Reuters report, Brent crude futures fell by $1.59, or 1.40%, to $111.84 per barrel on Monday, November 2. At the same time, US West Texas Intermediate (WTI) crude futures declined by $1.56, or 1.50%, to $102.56 per barrel.
Market analysts said continued diplomatic efforts to ease tensions surrounding Iran had provided temporary relief to investors. However, concerns that the conflict could expand following the US midterm elections continued to influence market sentiment. As a result, despite the decline in prices, uncertainty over the future outlook remains.
Brent crude prices reached their highest level in six months during October. Fears that military tensions surrounding Iran could escalate further after the US midterm elections had previously put upward pressure on oil prices.
Tim Waterer, chief market analyst at KCM Trade, said the market experienced a technical correction on Monday morning following a significant rise in oil prices the previous week. In other words, some of the recent gains were reversed as prices adjusted after their earlier rally.
According to Waterer, the prospect of progress in diplomatic negotiations and the absence of a major military confrontation over the weekend had eased some of the immediate inflationary pressure caused by elevated energy prices. However, he expressed uncertainty about whether the relief would last.
Waterer warned that inflammatory statements and counterstatements concerning Iran could intensify following the US midterm elections. If tensions flare up again, Brent crude prices could rise once more, potentially approaching $120 per barrel.
Meanwhile, Iranian Foreign Minister Abbas Araghchi said on Sunday that diplomatic efforts were continuing, with the aim of maintaining discussions with Qatari mediators. He described the talks as ongoing and making progress, while stressing that Tehran remained prepared on both the defence and diplomatic fronts.
