Crude oil prices fall more than 3% amid talks to end US-Iran war

Global crude oil prices fell more than 3% on November 2 amid diplomatic negotiations over a possible end to the US-Israeli war against Iran. As of 04:07 GMT, Brent crude oil futures declined by $3.68, or 3.2%, to $109.75 per barrel. US West Texas Intermediate (WTI) crude oil fell by $3.43, or 3.3%, to $100.69 per barrel.

The decline followed a sharp rise in crude oil prices last week. Market participants responded to ongoing talks between Iranian and Qatari officials, with Qatar acting as a mediator in efforts to secure an end to hostilities. The absence of any major military escalation over the weekend also helped ease prices.

Iranian Foreign Minister Abbas Araghchi said the prolonged negotiations were showing some progress and that Tehran was prepared to continue diplomatic consultations. However, he stressed that the country remained ready for both diplomacy and defense. Despite the talks, tensions in the Middle East remain high due to attacks on crude oil tankers in the Strait of Hormuz, which have increased energy transportation costs.

Meanwhile, Saudi Arabia increased its crude oil exports in October compared with September, despite attacks on the country’s energy infrastructure by Iran-aligned Yemeni Houthis. Continued supplies from major oil-producing countries have partly eased concerns about a potential shortage in the global market.

Analysts at KCM Trade and ING noted that future crude oil price movements would depend on the outcome of negotiations and the risk of renewed military escalation. Despite the current decline, the threat of a broader conflict remains a significant factor supporting crude oil prices. If regional tensions intensify, Brent crude oil could rise again to $120 per barrel.

Tags: crude oil, global market