Jakarta, ThedailyID — Global oil prices plunged more than 7% on Monday, November 2, following renewed diplomatic efforts involving Iran and Qatar. The talks raised hopes of a possible end to the war involving the United States and Israel.
According to Reuters, Brent crude fell US$8.66, or 7.63%, to US$104.77 per barrel. Meanwhile, US West Texas Intermediate (WTI) dropped US$7.66, or 7.36%, to US$96.46 per barrel.
During the session, Brent briefly reached US$103.28 per barrel. WTI also touched a low of US$95.15.
The decline followed comments from Iranian President Masoud Pezeshkian. He said Supreme Leader Ayatollah Mojtaba Khamenei had granted the government certain powers to pursue peace negotiations.
Pezeshkian said Tehran would seek to resolve the conflict through dialogue. Iranian state media reported his remarks as diplomatic contacts continued.
Iranian negotiators have also held several days of discussions with Qatari mediators. Their talks aim to find a way to end the war.
Meanwhile, US President Donald Trump said on Monday that Iran wanted an agreement to end the conflict. He added that a deal could be possible. Later that evening, Qatari mediators traveled to Tehran to meet Iranian Foreign Minister Abbas Araghchi.
Raymond James analyst Pavel Molchanov said signs of progress in US-Iran talks had pushed oil prices lower. However, he urged market participants to remain cautious. Previous hopes for peace had failed to produce lasting results in recent months.
UBS analyst Giovanni Staunovo also highlighted the market’s sensitivity to developments in the Middle East.
“The oil market remains extremely sensitive to every piece of news from the Middle East,” Staunovo said.
Concerns about further escalation had pushed prices higher last week. However, renewed diplomatic efforts triggered a sharp reversal at the start of this week.
The talks follow increased attacks on oil tankers passing through the Strait of Hormuz. At the same time, shipping data showed signs of rising oil exports from major producers. Saudi Arabia’s crude exports in October also increased from September, according to two of three tanker-tracking companies.
Despite the latest decline, analysts warn that oil prices could rise again. The war, which began in late February, has depleted global oil reserves. Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), said nearly one billion barrels had been drawn from global inventories since the conflict disrupted shipments through the Strait of Hormuz.
Goldman Sachs estimates Brent crude could reach US$140 per barrel in 2027. This scenario could occur if Gulf oil production remains 3.5 million barrels per day below its 2025 average.
The bank cited increased attacks on shipping, damage to oil infrastructure, and a prolonged risk premium as key factors that could drive prices higher.
