Oil prices fell about 3% in Asian trading on Monday, 2 November, as reports that US President Donald Trump had asked Israeli Prime Minister Benjamin Netanyahu to give diplomacy with Iran more time eased immediate fears of a renewed round of strikes disrupting energy supplies.
Brent crude, the global benchmark, slipped to around $110 a barrel in early Asian trade, down about 3% on the day, while US West Texas Intermediate (WTI) fell to about $103.10, according to the Sunday Guardian’s Monday morning report. Other snapshots during the Asian session showed the same direction with slightly different levels as prices moved: Aaj English TV, citing Reuters, put Brent at $109.75, down 3.2%, and WTI at $100.69, down 3.3%, while Bloomberg, via The Edge Singapore, later recorded Brent at $111.03, down 2.1%, and WTI at $101.57, down 2.4%, at 10.03 a.m. Singapore time. Readers should treat those figures as morning snapshots from a moving market, not a single closing price.
What reportedly changed the mood
The move followed a report by Axios, cited by both the Sunday Guardian and Bloomberg, that Trump told Netanyahu in a phone call on Saturday that Washington should allow diplomatic efforts more time before considering a resumption of military operations against Iran. According to the Axios report, Netanyahu expressed concern about that approach and urged the United States to restart military strikes soon after the US midterm elections on Tuesday, 3 November.
Neither leader’s office has been quoted in these reports confirming the call in those terms, and the Axios account rests on unnamed people familiar with the conversation. The reporting should therefore be read as a reported account of the call, not as a confirmed transcript.
US Secretary of State Marco Rubio said on Saturday that no decision had been made on fresh strikes and that Trump prefers a diplomatic resolution, Bloomberg reported. That public line, combined with the absence of a major military escalation over the weekend, took some of the immediate heat out of prices, analysts said.
Talks in Doha, and the Hormuz question
Iranian and Qatari officials held a third consecutive day of talks on Monday, with Doha mediating in an effort to end the US-Israeli conflict with Iran and reopen the Strait of Hormuz, the narrow waterway through which a large share of the world’s seaborne oil moves. Iranian Foreign Minister Abbas Araqchi said on Sunday that the purpose of the talks was to continue consultations with the Qatari mediators and that Tehran was prepared for “both defence and diplomacy”, Aaj reported.
At the same time, Iran’s Supreme Leader, Mojtaba Khamenei, ordered his top military commanders to prepare for renewed confrontation with the US and Israel, even as his foreign minister signalled progress in the diplomatic talks, Bloomberg reported. That dual track — talks continuing while both sides prepare for the possibility of escalation — is why analysts cautioned against reading Monday’s fall as a settled turning point.
Florence Schmit, a senior energy strategist at Rabobank, described the move as a “temporary pullback”, Bloomberg reported, adding that current rhetoric suggests further escalation remains possible and could drive oil higher again.
The risks around shipping have not gone away. UK Maritime Trade Operations said on Sunday it had received a report that a ship had been struck by a projectile in Hormuz, following an attack on a liquefied natural gas tanker on Friday, and also reported a vessel struck east of Ras Al Khafji in Saudi Arabia, deep inside the Persian Gulf.
Why the market is so sensitive right now
Brent rallied in October to a six-month high, Bloomberg reported, despite a revival of crude flows through Hormuz, because traders have been pricing in the risk that the conflict escalates again after the midterms. Trump has repeatedly threatened to resume strikes on Iran after the elections if diplomatic efforts fail, and last Thursday a top commander briefed the president on military options, according to The Wall Street Journal, as cited by Bloomberg.
Against that backdrop, Goldman Sachs raised its Brent forecast to $105 a barrel for December and an average of $88 next year, citing heightened geopolitical supply risks, Bloomberg reported. Market forecasts cited in the Sunday Guardian’s report suggested a renewed escalation after the midterms could push Brent towards $120 a barrel — a forecast, not a fact, and one that depends entirely on events that have not happened.
Separately, OPEC+ agreed over the weekend to keep output quotas unchanged in December after unwinding the last of its voluntary cuts in September, Bloomberg reported. The move was largely symbolic, it added, given that hostilities in the Middle East, including in the Red Sea, continue to threaten exports and production facilities.
What to watch next
Three things will decide whether Monday’s fall holds. First, whether the Doha talks produce anything concrete on Hormuz or a wider de-escalation. Second, what Trump says — and does — after Tuesday’s midterm elections, when the reported post-election window for renewed strikes opens. Third, whether shipping incidents around Hormuz and the Persian Gulf continue, since those directly affect how much oil traders believe can move safely.
For households and businesses, the immediate transmission is through fuel prices, which have already been under pressure from higher diesel costs in the US and Europe during the conflict. A sustained fall in crude would ease that pressure; a renewed spike would do the opposite. Monday’s move, on its own, guarantees neither.
FAQ
Why did oil prices fall on 2 November?
Reports that Trump asked Netanyahu to give Iran diplomacy more time, plus a third day of Iran-Qatar talks in Doha and no major escalation over the weekend, eased near-term supply fears.
How far did Brent and WTI fall?
About 3% in early Asian trading — Brent to around $110 a barrel and WTI to about $103.10 — with later snapshots showing slightly smaller percentage falls as prices moved during the session.
Could prices rise again quickly?
Yes. Analysts cited in the coverage warn the pullback may be temporary if talks fail or strikes resume after the US midterms, with some forecasts pointing back towards $120 for Brent in an escalation scenario.
Sources:
- Sunday Guardian, “Oil Prices Fall Nearly 3% as Trump Urges Netanyahu to Give Iran Diplomacy More Time Ahead of US Midterm Elections” (2 Nov 2026): https://sundayguardianlive.com/world/oil-prices-fall-nearly-3-as-trump-urges-netanyahu-to-give-iran-diplomacy-more-time-ahead-of-us-midterm-elections-brent-crude-drops-to-110-per-barrel-315635/
- The Edge Singapore / Bloomberg, “Oil falls as report says Trump to give Iran diplomacy more time” (2 Nov 2026): https://www.theedgesingapore.com/news/highlight/oil-declines-ahead-midterm-elections-despite-hormuz-attacks
- Aaj English TV / Reuters, “Oil prices ease 3% on optimism for Qatari-led talks on ending Iran war” (2 Nov 2026): https://english.aaj.tv/news/330478951
