Oil prices fall 2% on Iran diplomacy hopes

• Oil prices fell on Monday, October 26, 2026, with U.S. West Texas Intermediate dropping 2.16% to $101.04 per barrel and Brent declining 1.89% to $114.51.
• Reports of Qatari diplomatic efforts to ease tensions between the United States and Iran pressured prices, although continued Houthi attacks on Saudi Arabia kept supply risks elevated.
• Saudi Arabia announced plans to store crude oil in Singapore from the second half of 2027, while the International Energy Agency warned of prolonged disruptions to global energy markets.

Oil prices fell around 2% on Monday, October 26, 2026, as hopes of easing hostilities between the United States and Iran reduced some geopolitical concerns following last week's rally.

U.S. West Texas Intermediate crude futures declined $2.23, or 2.16%, to $101.04 per barrel at 0426 GMT, while Brent crude fell $2.21, or 1.89%, to $114.51.

“Concerns over renewed military hostilities in the Middle East, which drove much of last week's crude rally, have eased this morning, but the reprieve may prove temporary,” said Vanda Insights founder Vandana Hari.

Qatari mediators traveled to Tehran on Sunday to support efforts to reduce regional tensions, although Houthi attacks on Saudi Arabian oil facilities and infrastructure continued over the weekend.

Brent gained 6% last week and WTI increased 2.3%, supported by concerns about energy supply disruptions and shipping risks in the Middle East.

Saudi Arabia and Singapore announced plans for Saudi Aramco to begin storing crude at Singapore's Jurong Rock Caverns in the second half of 2027 to strengthen regional energy supply security.

International Energy Agency Executive Director Fatih Birol warned that energy markets may not return to prewar conditions in 2027, as disruptions affecting the Strait of Hormuz and Bab el-Mandeb continue to influence global supplies.