West Texas Intermediate (WTI) crude slid Monday as markets assessed a possible diplomatic opening after the Associated Press described an Iranian proposal linking the Strait of Hormuz's reopening to U.S. steps.
Reuters reported WTI at $99.83 per barrel in its 7:50 a.m. ET (12:50 UTC) update, down $4.29, or 4.1%. Brent crude futures were $108.66, a loss of $4.77, or 4.2%. FXStreet's 9:34 a.m. ET (14:34 UTC) report put WTI near $96.65 and described a decline exceeding 5%, using Friday's reported high of $104.03 as its comparison. The reports came at different times and do not establish a matched quote basis.
Monday's decline followed a Friday pullback from near $104 amid Hormuz shipping risks.
An official briefed on the discussions told Reuters that Iranian and Qatari officials had spent several days in talks. Reuters also reported that a draft proposal was circulating and another meeting remained possible.
The AP reported that Iran's plan could permit the Strait of Hormuz to reopen within two days, conditional on U.S. action. Its report listed Tehran's demands as lifting the U.S. blockade of Iranian ports, ending sanctions on Iranian oil sales and agreeing to a ceasefire that includes Lebanon. Iran also wants ships using a reopened strait to follow a route agreed with Oman and travel under Iranian supervision, AP reported. The agency said there was no indication Washington had accepted the plan.
Esmail Baghaei, Iran's Foreign Ministry spokesperson, said the proposal continued to underpin mediated talks and “once again demonstrates Iran's good-faith approach,” AP reported. Tim Waterer, chief market analyst at KCM Trade, told Reuters that diplomatic hopes and the lack of meaningful military escalation over the weekend had “taken some of the immediate heat out of prices for now.”
AP also reported concern over possible renewed strikes after the U.S. midterm elections Tuesday, Nov. 3.
On Nov. 1, Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman agreed to keep December 2026 production requirements at September 2026 levels, OPEC said. The group's next monthly meeting is scheduled for Nov. 29.
