Oil Prices Stabilize After 8% Decline as Hopes Rise for US-Iran Negotiations

November 3, 2026 dailymirror Brent crude prices stabilized following a near 8% decline in the previous day’s trading, as both the United States and Iran expressed a willingness to participate in peace discussions amidst an ongoing conflict in the Middle East that has now extended into its ninth month.

The global benchmark was around $105 per barrel, while West Texas Intermediate was trading under $97 after witnessing its steepest drop in three months on Monday. Iran’s president mentioned that his administration has been granted expanded negotiating powers by the country’s supreme leader, and US President Donald Trump hinted at potential progress in talks. However, continued violence keeps the market on edge.

On Monday, the US conducted strikes on Iran’s Qeshm Island, situated at the entrance of the Strait of Hormuz, continuing a series of small-scale attacks over the past weeks, as reported by the Wall Street Journal, citing American officials. The Islamic Republic News Agency, which is state-run, reported five explosions occurred on the island.

“It appears irrational to see such significant price reductions in light of the high tensions,” commented Karen Young, a senior research scholar at Columbia University’s International and Public Affairs faculty. “However, as developments unfold, it may lead to further price surges if military actions by the US and Israel against Iran intensify.”

The price drop on Monday coincided with the US midterm elections, where both Trump and the Republican Party are under escalating political pressure due to rising energy prices associated with the conflict. The president has repeatedly stated he would seek a resolution, with the threat of renewed strikes against Iran looming after the elections.

When a reporter inquired whether attacks on Iran would recommence following the midterms, Trump shook his head and responded “no.” Throughout this conflict, he has consistently alluded to possible new strikes while claiming diplomatic progress, yet no significant advancements have emerged. This unexpected fall in oil prices also affected other energy markets, as European gas futures slumped nearly 9% and US heating oil saw its most substantial drop in six months.

This decline comes after a nearly 14% increase in Brent prices during October, which peaked at a six-month high due to concerns about renewed tensions between the US and Iran, despite a rebound in Persian Gulf exports.

Despite this, the likelihood of a diplomatic breakthrough remains unclear. Iranian President Masoud Pezeshkian did not elaborate on the extent of power conferred by Supreme Leader Mojtaba Khamenei or whether it signals a considerable shift in Iran’s stance during the indirect negotiations with the US. His remarks were reported by IRNA.

Significant discrepancies still exist between the two nations. Tehran is advocating for the removal of the US naval blockade on its ports, easing of sanctions, and release of frozen assets before granting full maritime shipments through the Strait of Hormuz. Conversely, Washington is demanding concessions regarding Iran’s nuclear program.

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