Oil Prices Drop as Trump Prioritizes Diplomacy With Iran

Crude oil prices fell in early Asian trade on November 2, 2026, following a series of diplomatic efforts to end the conflict between Iran and the U.S.-Israeli alliance. Brent crude dropped from a recent high of $117.64 to approximately $111.43 per barrel, while West Texas Intermediate declined to $102.04.

Donald Trump informed Israeli Prime Minister Benjamin Netanyahu that he prefers to prioritize diplomacy over immediate military action, despite Netanyahu's pressure to resume U.S. strikes following the midterm elections. Trump stated that negotiations with Iran are "going fine," though he added he is "not in that much of a hurry" to reach a deal. This diplomatic shift coincided with a letter from Vice President JD Vance to Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, aimed at reviving peace talks.

Simultaneously, Iranian and Qatari officials conducted three consecutive days of talks to end the war and establish a plan to reopen the Strait of Hormuz. These efforts occur amid high security risks, including Houthi attacks on Saudi energy infrastructure and a recent incident where a QatarEnergy LNG tanker was hit by unidentified objects in the Arabian Gulf.

To stabilize the market, OPEC+ agreed to maintain its December production targets, with no further policy adjustments expected until next year. Analysts warn that prices could climb toward $120 a barrel if these negotiations fail or if military escalation resumes.