Oil prices opened the week lower after three days of mediated talks raised hopes that the war involving the United States, Israel and Iran could move towards a settlement. Brent crude futures fell $1.51, or 1.33%, to $111.92 a barrel in early Asian trading on Monday, Reuters reported. US West Texas Intermediate crude fell $1.78, or 1.71%, to $102.34 a barrel in the same session.

Talks ease supply fears

The fall followed reports that Iranian and Qatari officials had held a third straight day of discussions aimed at ending the conflict. Traders have been pricing in the risk of further disruption to oil supplies through the Strait of Hormuz, so any sign of progress tends to pull prices back. That risk premium had built sharply in the previous session. On Friday 30 October, Brent's expiring December contract settled at $117.64 a barrel, its highest settlement since late April, while the January contract settled at $113.43 and US crude at $104.12, according to Reuters-based reporting.

What to watch next

The market remains sensitive to headlines rather than fundamentals alone. A breakdown in talks, a new incident in the Gulf, or a fresh statement from Washington could reverse Monday's fall quickly. Conversely, concrete progress towards reopening shipping lanes would likely put further downward pressure on prices. For households and businesses, the immediate effect will depend on whether the retreat holds through the week, since pump and heating costs tend to follow sustained moves in crude rather than a single session. Sources: Reuters and Business Today.