Oil drops to $97 amid hopes of US-Iran peace deal

November 09, 2026 (MLN): Oil prices declined at the start of Monday’s trading session after U.S. President Donald Trump indicated that further military action against Iran was unlikely, citing progress in negotiations aimed at ending the conflict.

Currently, Brent crude futures is down, 0.98%, at $97.36 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $0.41, or 0.45%, to $90.42 per barrel by [10:58 am] PST.

The decline reversed modest gains recorded at Friday’s settlement, as investors weighed the possibility of renewed U.S. strikes against Iran amid reports of attacks on vessels in and around the Strait of Hormuz by both sides.

Despite Monday’s decline, Brent crude recorded a 17% weekly loss last week, marking its steepest percentage drop since the beginning of the COVID-19 pandemic and its largest decline in absolute terms, according to LSEG data dating back to 1988.

In a telephone interview with CNN, Trump said further military action was highly unlikely to be necessary, depending on whether a strong agreement could be reached. His remarks followed earlier indications that Washington could resume attacks on Iran after last week’s U.S. midterm elections, as reported by CNBC.

However, the absence of any large-scale U.S. military operation has left markets uncertain about the future direction of the conflict.

Meanwhile, concerns over an emerging global supply surplus continued to weigh on oil market sentiment. JPMorgan said recovering Middle Eastern oil flows, increasing production from other countries and subdued demand had pushed global oil supply above consumption.

The bank estimated that the market recorded a surplus of 1.1 million barrels per day in September, which widened to 1.4 million bpd in October.

On the supply front, Iraq reached an understanding with the United States on Sunday to facilitate its oil exports through the Strait of Hormuz using a shipping route near Oman, Iraqi Foreign Minister Fuad Hussein told Al Jazeera.

Hussein also revealed that Iraq had suffered losses of $60 billion due to the Iran conflict and disruptions to its oil exports.

Separately, Yemen's Houthi group claimed responsibility for an attack on Saudi Aramco's offices in Riyadh on Sunday, which damaged windows but caused no reported casualties.

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