Oil drops over 4% on hopes of progress in talks on ending US-Iran war

Oil benchmarks lost about 4.2% on Monday as diplomatic activity involving Iran and Qatar encouraged hopes that disruption to Middle East supply could lessen. Business Recorder reported Brent at $108.64 a barrel and US West Texas Intermediate at $99.71 by 1020 GMT, declines of $4.79 and $4.41 respectively.

An official briefed on the discussions said Iranian negotiators had departed, while a draft proposal was circulating and another meeting remained possible. The market had entered November after Brent’s strongest monthly finish in six months, amid conflict-related supply concerns; attacks on tankers and infrastructure, alongside a drawdown of nearly 1 billion barrels from global inventories since the war disrupted Strait of Hormuz shipping, remain part of the backdrop. Goldman Sachs lifted its forecasts, saying Brent could reach $140 in 2027 if Gulf production stays 3.5 million barrels per day below its 2025 average.