Oil Prices Slide as Trump Signals Openness to Diplomacy With Iran, WTI Falls More Than 3%
US West Texas Intermediate (WTI) crude oil prices dropped more than 3% on November 2 as growing hopes for renewed diplomatic negotiations between Washington and Tehran eased fears of further military escalation in the Middle East.
WTI fell $3.43, or 3.3%, to $100.69 per barrel in early Asian trading, while Brent crude declined 3.2% to $109.75 per barrel.
The decline followed three consecutive days of talks involving Iranian and Qatari officials aimed at finding a diplomatic path to end the conflict. Reports also indicated that Iran had circulated a proposal for further negotiations.
The market reaction comes amid growing uncertainty over President Donald Trump’s next move after allegations that Israeli Prime Minister Benjamin Netanyahu has pushed for renewed military action against Iran, including claims involving a possible nuclear strike that remain unverified.
US Secretary of State Marco Rubio said Trump had not made a decision on further military strikes and remained open to a diplomatic solution.
Investors are now closely watching whether negotiations can prevent another round of attacks, particularly around the Strait of Hormuz, a critical route for global oil shipments.
The decline reflects easing geopolitical risk concerns, but oil markets remain highly sensitive to any breakdown in negotiations or renewed military escalation.