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Oil Prices Tumble on Hopes of US-Iran Peace Talks, Lowering Global Bond Yields
Oil prices fall more than 3% as hopes grow for a US-Iran diplomatic breakthrough to end the war.
Key points
- Brent crude fell more than 6.5% to as low as $105.55 a barrel on Monday, its lowest since 16 October.
- The yield on 10-year UK bonds fell 10 basis points to its lowest since 22 September.
- Qatari officials tried over the weekend to negotiate the release of more than $6bn (£4.5bn) in Iranian assets.
Why it matters. The drop in oil prices sparked hopes of a break in the inflationary pressures gripping the global economy, and lower government borrowing costs followed.
Crude slumped on Monday, with oil down 8% and Brent posting its biggest fall since April, as hopes rose that US-Iran peace talks could soon take place. Stock markets in Asia and Europe mostly gained, but the rally faded in US hours as investors turned to Tuesday's midterm elections. UK gilt yields fell 10 bps and US long-end yields dropped 4 bps, while Trump said a deal "could happen".
Latest updates
Oil Prices Tumble on Hopes of US-Iran Peace Talks, Lowering Global Bond Yields
Oil prices tumbled on Monday, 2 November, on hopes that US-Iran peace talks could soon take place. The fall pushed bond yields lower around the world. Stock markets in Asia and Europe mostly benefited. Reuters' Jamie McGeever reported the moves from Orlando, Florida. The column also discusses continuing angst over artificial intelligence in markets.
US Stock Futures Rise as Oil Prices Fall Sharply on Iran Peace Hopes
US stock futures rose early Monday, November 2, 2026, as oil prices dropped sharply. Oil fell more than 4% after reports that the United States and Iran are seeking a diplomatic end to their war, CNBC reported. At 6:41 a.m. ET, the QQQ fund was trading higher. Yahoo Finance reported that investors regained risk appetite ahead of a busy week that includes earnings, the US midterm elections and a key jobs report. Stock Titan also flagged Perion and Kosmos among the day's big movers.
Oil Prices Drop More Than 3% On Hopes Of US-Iran Diplomatic Progress
The oil price has fallen to its lowest level in more two weeks amid new hopes of a breakthrough to end the Iran war. Brent crude, the international benchmark, dropped by more than 6.5% to as low as $105.55 a barrel on Monday, the lowest since 16 October, sending shares in airline companies higher and pushing down government borrowing costs. Oil prices fell after Tehran revealed that contacts between Iran and the US to end their eight-month war were continuing. “Consultations through mediators are very intensive. We have presented our conditions and proposals and everything depends on the political rationality of Washington,” the Iranian foreign minister, Abbas Araghchi, said, according to the state media outlet IRNA. Over the weekend, Qatari officials tried to negotiate the release of more than $6bn (£4.5bn) in Iranian assets , so that Tehran might allow the strait of Hormuz to reopen. Donald Trump had earlier taken a belligerent tone, telling voters in Iowa on Sunday that Iran would receive “the hammer” unless there was progress. “The only reason why I’m not finished with Iran is I want to be nice. I want to try and save all those lives if I can ... But at some point we’re going to have to give them the hammer,” he said during a campaign rally in the run-up to the US midterm elections. But investors were cheered by reports on Monday that Iran’s supreme leader, Mojtaba Khame.
Oil Prices Drop More Than 3% On Hopes Of US-Iran Diplomatic Progress
The oil price has fallen to its lowest level in more two weeks amid new hopes of a breakthrough to end the Iran war. Brent crude, the international benchmark, dropped by more than 6.5% to as low as $105.55 a barrel on Monday, the lowest since 16 October, sending shares in airline companies higher and pushing down government borrowing costs. Oil prices fell after Tehran revealed that contacts between Iran and the US to end their eight-month war were continuing. “Consultations through mediators are very intensive. We have presented our conditions and proposals and everything depends on the political rationality of Washington,” the Iranian foreign minister, Abbas Araghchi, said, according to the state media outlet IRNA. Over the weekend, Qatari officials tried to negotiate the release of more than $6bn (£4.5bn) in Iranian assets , so that Tehran might allow the strait of Hormuz to reopen. Donald Trump had earlier taken a belligerent tone, telling voters in Iowa on Sunday that Iran would receive “the hammer” unless there was progress. “The only reason why I’m not finished with Iran is I want to be nice. I want to try and save all those lives if I can ... But at some point we’re going to have to give them the hammer,” he said during a campaign rally in the run-up to the US midterm elections. But investors were cheered by reports on Monday that Iran’s supreme leader, Mojtaba Khame.
Oil Prices Drop More Than 3% On Hopes Of US-Iran Diplomatic Progress
watch now Crude oil prices fell sharply Monday after U.S. Secretary of State Marco Rubio said President Donald Trump prefers not to use military force against Iran and would like to resolve the conflict diplomatically. Brent crude futures, the international benchmark, fell 6.4% to $106.20 a barrel as of 9:50 a.m. ET. U.S. West Texas Intermediate declined 6.5% to $97.35 per barrel. Trump has previously said that he will not attack Iran before the U.S. midterms. But the oil market had priced in the risk of a major military escalation after the elections. Stock Chart IconStock chart icon Brent The president "hasn't made a decision," Rubio told reporters over the weekend. "What the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful," the secretary of state said. "But we would prefer to do it peacefully." Iran's Foreign Minister Abbas Araghchi said an agreement with the U.S. is possible if Washington "demonstrates goodwill" and is "truly seeking a peaceful solution," according to the state-owned Islamic Republic News Agency . Araghchi said mediators are discussing the proposal Iran made during the United Nations General Assembly in September. Tehran expects the U.S. to lift sanctions, reduce its military presence in the region to previous level.
Oil Prices Fall More Than 3% on Hopes of US-Iran Diplomatic Progress
Oil prices fell more than 3% on hopes of diplomatic progress between the United States and Iran. Oil flows out of the Gulf have risen substantially, easing the large supply disruption caused by the US and Israeli war on Iran. According to market intelligence firm Kpler, crude exports from the Gulf averaged 24.6 million barrels per day in the week to October 18. That volume exceeded the pre-war average. The recovery in supply has eased pressure on global crude markets. Whether the diplomatic talks produce a settlement will determine how durable the price decline is.