Oil prices retreat to $110 on Iran diplomacy hopes

November 02, 2026 (MLN): Oil prices declined on Monday as continued diplomatic discussions between Iranian and Qatari officials raised hopes of a potential agreement to end the U.S.-Israeli war on Iran.

Currently, Brent crude futures is down, 3.29%, at $109.70 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $3.50, or 3.36%, to $100.62 per barrel by [09:25 am] PST.

Brent crude closed October at its highest level in six months, supported by concerns that tensions between Washington and Tehran could intensify following Tuesday’s U.S. midterm elections.

Tim Waterer, chief market analyst at KCM Trade, attributed the latest decline to a technical correction following last week’s strong rally, alongside renewed hopes of diplomatic progress and the absence of significant military escalation over the weekend, as reported by CNBC.

However, uncertainty surrounding the conflict continued to weigh on market sentiment. Waterer warned that escalating rhetoric over Iran after the midterm elections could drive Brent crude prices toward $120 per barrel.

Iranian Foreign Minister Abbas Araqchi said on Sunday that ongoing talks were progressing and aimed at continuing consultations with Qatari mediators. He added that Tehran remained prepared for both defence and diplomacy.

Meanwhile, attacks on oil tankers navigating the Strait of Hormuz have increased concerns over global energy supplies and pushed up shipping costs.

Saudi Arabia also increased its crude oil exports in October compared with September, despite attacks by Iran-aligned Yemeni Houthi forces on its energy infrastructure, according to two of three ship-tracking companies.

Separately, the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, maintained their December oil production targets at Sunday's meeting.

The decision reinforced expectations that further adjustments to the group's production policy would be deferred until next year, as export disruptions linked to the Iran war continue to challenge the alliance.

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