Oil prices drop 3% as Iran-Qatar talks continue

Oil prices fell more than 3% on Monday, November 2, after Iranian and Qatari officials held a third consecutive day of talks aimed at reaching a ceasefire agreement in the US-Israeli war against Iran. Brent crude futures dropped by $3.43, or 3%, to $110 per barrel, while US West Texas Intermediate fell $3.50, or 3.4%, to $100.62 per barrel. The decline follows Brent finishing October at its highest level in six months amid fears the US-Iran conflict could escalate after US midterm elections on Tuesday, November 3. Iranian Foreign Minister Abbas Araqchi said on November 1 that the "ongoing and progressing" talks with Qatari mediators continue, adding that Tehran is ready for "both defense and diplomacy." The negotiations occur amid attacks on oil tankers in the Strait of Hormuz, which have raised global energy and shipping costs. Markets have already priced in the risk of further Middle East tensions, with analysts noting a $120 per barrel ceiling for price growth.