Oil prices fell more than 3% on Monday after Iranian and Qatari officials continued talks on a possible end to the conflict involving Iran, easing fears of an immediate escalation. Brent fell $3.68 to about $109.75 a barrel, while U.S. WTI dropped $3.43 to $100.69. Both benchmarks had reached their highest levels since April late last week.
The retreat followed gains on Friday, when Brent settled at $117.64 a barrel, up 2.4% for the day, and touched $118 during the session. WTI rose to $104.12. Despite Monday’s decline, prices remained well above levels before the conflict with Iran began.
Iranian and Qatari representatives held talks for a third consecutive day over the weekend as Qatar sought to mediate. Iranian Foreign Minister Abas Arakči said the discussions were progressing, but no agreement had been reached.
The United States said it would not attack Iran again before the congressional elections on 3 November. President Donald Trump also said the United States would not launch another attack before the vote, but did not rule out military action afterwards. The possibility of renewed escalation after the elections remains a focus for oil traders.
Attacks on vessels have added to concern about shipments through the Strait of Hormuz, one of the world’s most important oil transport routes. About one-fifth of global oil traffic passes through the strait, where a serious disruption could quickly push up energy prices. Late last week, a tanker was struck by explosives attached to its hull. Its crew was not injured and the fire was extinguished.
The tanker incident was the first publicly known successful attack using explosives attached to a vessel’s hull in the Strait of Hormuz since the U.S.-Iran conflict began in February. Iranian authorities reported new incidents over the weekend, saying tankers had hit mines; some of those claims have not been independently confirmed.
Seven OPEC+ members decided over the weekend to keep their existing production targets for December, leaving broader production-policy decisions until 2027. Brent rose about 13.6% in October, while U.S. WTI gained more than 15%. The price moves reflect the return of geopolitical risk as a factor in energy markets, with shipping disruptions and the course of talks among the risks watched by traders.
