Brent crude futures drop 2.94% as diplomatic talks raise hopes for an agreement. Oil prices stay exposed to volatile swings until maritime traffic in the key Gulf chokepoint normalizes. Middle East crude shipping costs hit all-time highs as producers discount barrels to stimulate demand.
Contracts started Sunday’s session with losses following a weekly advance, as traders weighed prospects for a truce. Iranian negotiators met with Qatari mediators in Doha for a third day, discussing a potential plan to reopen the critical waterway within two days. President Trump described negotiations as progressing and has not ruled out further military action. Market participants view the November 3 vote as a key variable that could trigger renewed hostilities or sustain diplomatic momentum.
Brent crude futures traded at $110.10 at 03:28 UTC on Monday, down from the previous session close of $113.43. The contract has moved between $110.07 and $111.88 since the current session opened at 23:10 UTC on Sunday. Over the prior five sessions, prices fluctuated within a range of $111.05 to $117.42.
Looking at the wider trend, Brent futures have traded between $97.08 and $117.42 over the previous 20 sessions. The current price sits within the lower half of this multi-week range.
Commentators suggest the benchmark must defend the $110 threshold while geopolitical outcomes remain unclear. A breakthrough deal might lower war risk premiums and add downward pressure on crude valuations. Fresh combat operations or transport limits could instead erase recent losses rapidly.
Traders will monitor the US ISM Manufacturing PMI release due at 15:00 UTC on Monday for clues on demand. Robust economic figures may bolster bets on higher borrowing costs, which often dampens appetite for raw materials. The US ISM Services PMI release follows on Wednesday at 15:00 UTC.
Sources: Yahoo Finance quotes, ForTraders economic calendar.
