Oil Falls 3.3% to $109.66 for Brent as Diplomatic Efforts on Hormuz Advance
Key Facts
Oil prices fell more than 3% in early trading on Monday, November 2, 2026, with Brent crude down 3.3% to $109.66 a barrel and U.S. crude falling by the same percentage to $100.64, according to the Associated Press. The move came as consultations continued on a proposal that could reopen the Strait of Hormuz, a vital oil-trade route. Iran’s foreign minister said negotiators from his country were in Qatar to discuss the proposal, which could reopen the strait within two days if the United States met Iran’s conditions. But he stressed that there were no direct talks between Tehran and Washington. The developments link hopes of reducing the risk of supply disruptions with continuing tensions over tanker traffic through the strait.
Iran’s foreign minister said consultations with mediators were continuing and that the outcome of diplomatic efforts depended on the U.S. response to what he called “Iranian questions.” The Associated Press added that Tehran hoped Washington would choose the diplomatic path. The presence of negotiators in Qatar does not mean the two countries have resumed direct talks, according to the reported statements; the minister stressed that no such talks were taking place. This diplomatic track comes as the safety of navigation through Hormuz remains a focus for energy markets, given the impact any disruption to tanker traffic could have on supplies and shipping costs. Reuters reported that attacks on tankers transiting the strait are pushing up global energy and shipping costs, keeping supply risks in place despite ongoing diplomatic contacts.
The decline followed a rise in oil prices during October; Brent ended the month at its highest closing level in six months amid fears of an escalation in the U.S.-Iran conflict after the midterm elections. Reuters quoted an analyst as saying that diplomatic hopes and the absence of a major military escalation over the weekend eased some immediate pressure on prices. But he pointed to the possibility that escalating statements after the elections could push Brent toward $120 a barrel. The contrast reflects the market’s sensitivity to the course of risk: the early-trading decline coincided with signs that contacts were continuing, while the possibility of supply disruption remained. Prices had been volatile in previous sessions as hopes for peace and fears of a wider conflict competed to steer trading.
On supply, the seven countries participating in the OPEC+ meeting decided to keep December production at the required production levels for September 2026, according to the organization’s statement. The decision means December’s planned production levels will not rise under this measure, as markets monitor the impact of developments in the Gulf on oil flows. The organization set November 29, 2026, for the seven countries’ next monthly meeting. The upcoming date gives the market a near-term milestone for tracking any change in the production decision, alongside developments in negotiations over Hormuz. The organization said the next meeting would be held on that date.
Markets are also awaiting U.S. inventory data, with the scheduled release differing from the usual timing for the next report. The U.S. Energy Information Administration’s schedule lists the next weekly report for November 12, 2026, at 12:00 p.m. Eastern time, covering data for the week ended November 6. This timing is an exception to the report’s usual release time of Wednesday at 10:30 a.m. Eastern time, with exceptions published in the schedule. The American Petroleum Institute lists its weekly report for November 3, 2026, and notes that release dates are subject to change. The institute’s report is therefore due before the scheduled EIA report, which has been delayed beyond its usual weekly release time.