Oil plunges 8% as US-Iran peace hopes ease Hormuz fears
Oil prices tumble as US-Iran diplomacy raises hopes for Strait of Hormuz reopening
Brent crude price tumbled more than 8% as hopes grew for a diplomatic end to the US-Iran war, erasing part of October’s sharp rally.
Brent was down $9.32, or 8.22%, to $104.1 a barrel, as of 21.38 GMT on Monday, Nov. 2, 2026 (5.39am in Beijing on Tuesday, Nov. 3, 2026), as per OilPrice.com. WTI fell $8.10, or 7.78%, to $96.02, below the psychological $100 mark.
Murban crude fell $13.40 or 11.29% to $105.3 per barrel.
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The sell-off followed weekend mediation talks between Iran and Qatar. Oil first fell more than 4% as a draft proposal to end the war circulated after Iranian negotiators left Qatar.
Analysts noted that the weekend passed without meaningful military escalation, which took some heat out of prices.
Qatar’s proposal reportedly centres on reopening the Strait of Hormuz.
The drop reverses much of a strong October.
Brent gained 13.6% and WTI 15.2% in the month, with Brent finishing at a six-month closing high after a tanker was struck in the Strait of Hormuz.
Supply remains tight.
OPEC output was still more than 3 million barrels a day below prewar levels in September.
OPEC+ also left December 2026 production targets unchanged.
Analysts caution that this is hope, not a deal.
The decline reflects improved expectations for diplomacy rather than a definitive resolution of the conflict. Murban’s 11.29% fall carries a “7 hours” timestamp in your screenshot, so that quote is stale and less reliable than Brent and WTI.
Oil has become a headline-driven market where diplomacy and military risk swing prices daily, while physical supply stays below prewar levels, keeping crude elevated even after Monday’s drop, with Brent still above $105 a barrel.
Cheaper crude could ease inflation and import bills for oil importers like the Philippines, where fuel costs have pressured the peso and prices, but relief depends on whether the drop lasts and pump prices follow.
What’s next
Watch the Iran-Qatar mediation, any reopening of the Strait of Hormuz, and the Nov. 3 US midterms. Some analysts warn Brent could reach $120 if tensions reignite after the election.
Local pump prices may lag by days.
