West Texas Intermediate (WTI) crude fell 4.31% to $99.63 a barrel, shedding $4.49, while Brent crude declined $4.93 to approximately $108.50, extending losses across the international oil market.
The sell-off followed a strong October rally that had pushed Brent to its highest level in six months, as traders priced in the possibility of renewed US military action against Iran and further disruptions to oil shipments through the Strait of Hormuz.
Iran-Qatar Talks Trigger Oil Market Sell-Off
The immediate catalyst for the decline was a third consecutive day of discussions between Iranian and Qatari officials aimed at securing an agreement to end the conflict.
Iranian negotiators left Doha on Sunday after consultations with Qatari mediators, but officials indicated that their departure did not signal a breakdown in negotiations. A draft proposal was reportedly circulating, with the possibility of another meeting.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said discussions were continuing around a framework for reopening the Strait of Hormuz and ending the US naval blockade.
Iranian Foreign Minister Abbas Araqchi also described the consultations as ongoing and progressing, although no final agreement had been reached.
US President Donald Trump has reportedly indicated a preference for allowing diplomatic efforts more time to progress before considering renewed military action against Iran.
The position has helped ease immediate market concerns about an escalation following Tuesday’s November 3 US midterm elections.
However, the possibility of further US military action remains unresolved. Washington has not ruled out a resumption of strikes if negotiations fail, while Iranian officials have maintained that any agreement must address the blockade and security arrangements surrounding the Strait of Hormuz.
The uncertainty means the decline in oil prices reflects improved expectations about diplomacy rather than a definitive resolution of the conflict.
OPEC+ Maintains December Production Targets
Seven OPEC+ producers have agreed to maintain their December production targets, signalling no immediate change in the group’s output policy. The decision comes as oil producers continue to navigate the consequences of the Middle East conflict and disruptions to regional exports.
Although the diplomatic developments have reduced immediate supply concerns, global oil availability remains sensitive to the pace of recovery in Gulf exports and the security of alternative shipping routes.
The market is therefore balancing the prospect of improved supply conditions against the possibility that renewed hostilities could reverse recent gains in export flows.
