Global crude oil prices fell sharply by more than 4% on Monday, November 2, as growing expectations of a diplomatic resolution between the United States and Iran helped calm market fears over Middle East supply disruptions.
Brent crude futures dropped $4.79, or 4.2%, to $108.64 per barrel, while U.S. West Texas Intermediate (WTI) crude slid $4.41, or 4.2%, to $99.71 per barrel.
The market pullback follows reports that Iranian negotiators engaged in talks with Qatari mediators to outline a framework aimed at concluding the ongoing US-Israeli war. Iranian Foreign Minister Abbas Araqchi confirmed that consultations were making progress, noting Tehran remains open to both defence and diplomacy. The news provided immediate relief after Brent crude closed October at a six-month high.
Market volatility has remained high following repeated disruptions and tanker attacks across the critical Strait of Hormuz shipping lane. While the conflict has reduced global inventories by nearly 1 billion barrels, increased October crude exports from Saudi Arabia have helped temper immediate shortfalls.
Despite Monday’s price drop, major financial institutions like Goldman Sachs warned that persistent structural supply risks could still drive Brent crude toward $140 per barrel by 2027 if regional output remains constrained.
