Oil prices drop amid diplomatic efforts to reopen the Strait of Hormuz

Global oil prices experienced a significant decline on Monday, November 2, 2026, as markets reacted to news of diplomatic efforts aimed at de-escalating the conflict in the Middle East. By the afternoon, Brent crude and U.S. West Texas Intermediate (WTI) both recorded a drop of approximately 6.5%. Brent fell to 106.09 dollars per barrel, while WTI dropped to 97.33 dollars, following initial morning losses of over 3%.

The decline follows intense consultations between Iranian officials and mediators, including Qatar and Pakistan. Iranian Foreign Minister Abbas Araghchi stated that the country is seeking a path toward ending the conflict, specifically aiming for a deal that would reopen the Strait of Hormuz and lead to renewed negotiations with the United States. Araghchi emphasized that these steps are contingent on the U.S. accepting Iranian conditions.

While the prospect of diplomatic progress has lowered market tensions, no formal agreement has been reached yet. Investors remain cautious as the security situation in the Gulf continues to be a point of significant uncertainty regarding future energy supplies.