Oil prices fall on Iran peace hopes

Global oil prices fell on Monday as hopes of progress in diplomatic efforts to end the war involving Iran, the United States and Israel eased concerns over potential disruptions to crude supplies.
Brent crude, the international benchmark, fell to US$106.39 a barrel in Asian trading, while US benchmark West Texas Intermediate (WTI) dropped to $97.34 by evening, according to OilPrice.com and Reuters.
The decline came as Iranian and Qatari officials continued talks for a third consecutive day, seeking to ease regional tensions and find a diplomatic solution to the conflict.
Oil prices had surged to a six-month high in October, with Brent crude reaching $118 a barrel on 30 October, the final trading day of the month. Brent gained 13.6% during October, while WTI rose 15.2%.
Market concerns intensified ahead of the US midterm elections scheduled for 3 November, amid fears of a further escalation in the conflict. 
Traders were particularly concerned that Washington and its allies could intensify military action against Tehran after the elections, potentially disrupting oil supplies from the Middle East.
However, reports of renewed diplomatic engagement have brought some relief to the market following last week’s sharp price increases.
Tim Waterer, chief market analyst at KCM Trade, told Reuters that oil prices had undergone a correction after posting significant gains last week.
He warned that Brent crude could approach $120 a barrel again if Washington adopted a tougher stance towards Iran.
Meanwhile, weaker demand from China has also helped limit the rise in oil prices, analysts said.
China’s sluggish economic growth and increasing adoption of electric vehicles have weighed on demand for conventional fuels. Growing electric vehicle use in other countries has also raised concerns about longer-term oil demand.
Diplomatic efforts continue
Iranian Foreign Minister Abbas Araghchi said on Sunday that discussions with Qatar were continuing as part of efforts to ease tensions.
He indicated that progress had been made but stressed that Iran remained prepared for both defence and diplomacy.
Qatar has been mediating efforts to end the confrontation between Iran and the United States.
Although the latest diplomatic engagement has raised hopes of a breakthrough, no agreement to end the conflict has been reached.
Oil markets therefore remain caught between expectations of a diplomatic settlement and concerns over further escalation in the region.
OPEC+ maintains production target
Meanwhile, OPEC+, the alliance of major oil-producing countries, has decided to keep its production target unchanged for December amid uncertainty over Middle Eastern oil supplies.
The decision was taken at a meeting on Sunday involving seven key member countries, including Saudi Arabia and Russia.
Disruptions to oil exports from the Middle East due to the Iran war have prompted the alliance to remain cautious about adjusting production levels.
OPEC+ production decisions are closely watched by global markets, as changes in output can influence crude prices alongside demand, inventories and geopolitical developments.
The alliance is expected to discuss its production policy for 2027 at its next meeting on 29 November.