Oil and gas prices drop amid Iran-US diplomatic de-escalation hopes

On November 2, 2026, international energy prices experienced a significant decline as markets responded to reports of ongoing diplomatic efforts between Iran and the United States. Following consultations facilitated by mediators in Qatar and Pakistan, Iranian Foreign Minister Abbas Araghchi suggested that a deal could lead to the reopening of the Strait of Hormuz and the resumption of negotiations to end the conflict in the Middle East.

By the end of the trading session, Brent crude had fallen by approximately 6.5% to $106.09 per barrel, while West Texas Intermediate (WTI) also dropped by 6.5% to $97.33. European natural gas prices also reacted sharply, with TTF futures falling over 10% to 93.19 euros per megawatt-hour. While earlier in the morning, oil prices were down by only 3.3%, the market sentiment shifted as the potential for renewed supply chain stability grew throughout the day.

Despite the downward trend in energy costs, regional uncertainty persists as no formal agreement has yet been reached. Market participants continue to closely monitor the diplomatic communications between Tehran and Western powers. The ongoing situation remains fluid, with industry experts observing the potential for further volatility depending on the success of the current mediation efforts.