Oil falls more than 4% as Iran–Qatar talks raise hopes of ending the war

Oil prices fell sharply on Monday after Iranian negotiators held several days of talks with Qatari mediators on a deal to end the US-Israeli war on Iran, Reuters reported. According to an official briefed on the talks, a draft proposal is being circulated and a follow-up meeting is possible.

The numbers

• By 12:50 GMT Brent was down $4.77, or 4.2%, at $108.66 a barrel; US WTI fell 4.1% to $99.83.
• Brent had ended October at a six-month high on fears the conflict could escalate again after Tuesday’s US midterm elections.
• The chief executive of Abu Dhabi’s ADNOC said the world has drained nearly 1 billion barrels from inventories since the war disrupted shipping through the Strait of Hormuz.

Risks remain

The talks followed a recent rise in attacks on tankers passing the Strait of Hormuz, although shipments from some major exporters have been increasing. Goldman Sachs raised its price forecasts on Sunday and said Brent could jump to $140 in 2027 if Gulf output stays 3.5 million barrels per day below its 2025 average.

Cheaper oil helped US stock futures rebound after Friday’s tech sell-off, AP reported; investors are also waiting for Apple’s results after Monday’s close.