Oil prices fell sharply on Monday, 2 November, as talks between Iranian and Qatari officials raised hopes that the war between the United States, Israel and Iran could move towards a negotiated end. Brent crude futures were down $8.47, or 7.47%, at $104.96 a barrel by 1724 GMT, while US West Texas Intermediate crude fell $7.50, or 7.2%, to $96.62. Brent touched a session low of $104.49 and WTI $96.44. This is a later intraday update: earlier on Monday, DailyByte reported a smaller morning fall, with Brent down 1.33% at $111.92, before the afternoon plunge deepened. The selling gathered pace after Iranian President Masoud Pezeshkian said the country's supreme leader had granted the government "certain authorities" for peace talks. Pezeshkian added that Tehran would try to resolve the problem through dialogue, without giving details.

Why traders moved so fast

Analysts said the market remains highly sensitive to every headline from the region. UBS analyst Giovanni Staunovo said fears of imminent escalation had pushed prices up last week, only for diplomatic progress to pull them sharply lower at the start of this week. Raymond James analyst Pavel Molchanov urged caution, noting scepticism was warranted after many "false dawns" over recent months.

What could still push prices back up

No deal has been confirmed, and the risks have not gone away. Goldman Sachs raised its oil forecasts on Sunday, saying Brent could reach $140 in 2027 if Gulf output stayed 3.5 million barrels a day below its 2025 average.

Sources: Reuters via Euronext Live; Reuters via Kitco, 2 November 2026. Figures are the 1724 GMT snapshot, not a close.