Crude oil prices fall for second day as market hopes for diplomatic resolution to Iran war

Crude oil prices fell for a second consecutive session on Tuesday, 3 November, as traders weighed the possibility of a diplomatic settlement to the eight-month war involving the United States and Iran. In CNBC’s afternoon report, Brent crude was down $1.23 at $103.54 a barrel and US West Texas Intermediate was 42 cents lower at $96.04. Both benchmarks had fallen by more than 7% on Monday after leaders in Washington and Tehran signalled openness to talks. The prices were snapshots from a volatile trading day, rather than closing figures.

Qatar continued to mediate, but a senior Iranian official told Reuters that the two sides remained far apart. Tehran has linked reopening the Strait of Hormuz to demands including relief from oil sanctions and an end to the US naval blockade. The risk of further fighting also remains: US officials said American forces had struck targets on Iran’s Qeshm Island near the strait. The competing diplomatic and military signals left traders reassessing how long disruption to energy supplies might last.