Oil Price Decline
On Monday, oil prices fell more than 3% after a recent rally, with Brent Oil Futures for January slipping 3.3% to $109.70 a barrel by 00:27 ET (05:27 GMT) and U.S. West Texas Intermediate (WTI) crude futures dropping 3.5% to $100.48 per barrel. Both contracts closed the month of October nearly 15% higher than at the start of the month.
Geopolitical Context
U.S. President Donald Trump told Israeli Prime Minister Benjamin Netanyahu in a Saturday phone call that he preferred to give diplomacy more time before deciding whether to resume military action, according to an Axios report. Netanyahu had pressed for U.S. strikes to restart shortly after the U.S. midterm elections, and Trump has previously indicated that military action could follow if negotiations fail, making the election a key event‑risk factor.
Market Commentary
ING analysts observed that if the midterms pass without either strikes or a diplomatic deal, the market will need to assess whether the geopolitical risk premium remains priced in or begins to unwind. They added that many key developments have unfolded over weekends, so the market may have to hold its breath until the end of the week.
Diplomatic Efforts
Iranian and Qatari officials held a third consecutive day of discussions aimed at ending the conflict. Tehran remains open to diplomacy while preparing to defend itself, and Qatar is mediating a proposal to reopen the Strait of Hormuz. The strait continues to be a central concern for energy markets, as attacks on tankers and restrictions on Iranian oil exports have raised shipping and insurance costs.
OPEC+ Decision
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to keep December output targets unchanged, indicating that further policy adjustments are unlikely before next year as the conflict continues to disrupt exports.
Publication Details
The article, authored by Ayushman Ojha and published by Reuters on 2 November 2026 at 07:38 am (updated 11:04 am), falls under the commodities category.