Oil price falls amid hope of a breakthrough to end Iran war
News Source
β’Mon, 02 Nov 2026 17:14:23 GMT
π° What Happened
The oil price fell to its lowest level in more than two weeks on Monday. Brent crude dropped more than 6.5 percent to 105.55 dollars a barrel, the lowest since October 16.
Prices fell after Iran said talks with the US to end their eight-month war were still going. Qatar has been trying to free more than 6 billion dollars of Iranian assets so Tehran will reopen the Strait of Hormuz.
Airline shares rose on the news. British Airways owner IAG gained 4.2 percent and United Airlines jumped 7 percent. UK government borrowing costs also fell.
π The Backstory
The US and Israel attacked Iran in late February, and Iran responded by blocking most ships in the Strait of Hormuz. About a fifth of the world's oil normally passes through that narrow waterway.
Oil has swung wildly since. Prices fell in the summer when a deal looked close, then jumped again when talks collapsed. Traders are also watching the US midterm elections and whether President Trump renews strikes afterwards.
π― Why It Matters
Fuel prices feed into almost everything, from flights to food deliveries. A sustained fall would ease inflation and give households some relief.
The oil price fell to its lowest level in more than two weeks on Monday. Brent crude dropped more than 6.5 percent to 105.55 dollars a barrel, the lowest since October 16.
Prices fell after Iran said talks with the US to end their eight-month war were still going. Qatar has been trying to free more than 6 billion dollars of Iranian assets so Tehran will reopen the Strait of Hormuz.
Airline shares rose on the news. British Airways owner IAG gained 4.2 percent and United Airlines jumped 7 percent. UK government borrowing costs also fell.
The US and Israel attacked Iran in late February, and Iran responded by blocking most ships in the Strait of Hormuz. About a fifth of the world's oil normally passes through that narrow waterway.
Oil has swung wildly since. Prices fell in the summer when a deal looked close, then jumped again when talks collapsed. Traders are also watching the US midterm elections and whether President Trump renews strikes afterwards.
Fuel prices feed into almost everything, from flights to food deliveries. A sustained fall would ease inflation and give households some relief.