Oil Prices Plunge as Trump Favors Diplomacy With Iran

Global oil prices fell sharply on November 2, 2026, with West Texas Intermediate dropping over 7% to $96.58 and Brent crude falling to approximately $104.93. The decline followed reports that Donald Trump prefers a diplomatic resolution to an eight-month conflict with Iran over immediate military force. This shift eased a geopolitical risk premium that had previously driven Brent futures toward $118 per barrel.

Diplomatic efforts intensified as Vice President JD Vance sent a message to Iran to revive peace talks, and Iranian negotiators spent three days in Doha with Qatari mediators. Iranian officials, including Foreign Ministry spokesman Esmaeil Baqaei, offered to reopen the Strait of Hormuz within two days if U.S. demands are met. However, tensions remain volatile; the Islamic Revolutionary Guard Corps reported two tankers hit mines in the Strait of Hormuz, and Supreme Leader Mojtaba Khamenei ordered armed forces to respond to any threat with an unrestricted response.

Secretary of State Marco Rubio confirmed that while the U.S. maintains the military capability to act, the president prefers a peaceful resolution. Trump warned that the conflict would end soon, stating Tehran must either make a deal or the U.S. will just end it. Meanwhile, OPEC+ agreed to maintain December production targets to stabilize the market. Investors continue to monitor the U.S. midterm elections, as some officials have advised Gulf Arab countries to prepare for a potential military campaign should negotiations fail.