(Oil & Gas 360) – Oil prices fell approximately 6% on Monday, November 2, as signs of renewed diplomatic engagement between Iran and international mediators raised expectations that the conflict affecting Middle Eastern petroleum supplies could move toward a negotiated resolution.Brent crude futures declined $6.78 to $106.65 per barrel, while U.S. West Texas Intermediate fell $6.37 to $97.75. The selloff followed four consecutive months of rising crude prices and renewed concerns last week about attacks on commercial tankers and regional energy infrastructure.Iranian President Masoud Pezeshkian indicated that Supreme Leader Mojtaba Khamenei had authorized the government to pursue peace discussions, providing a potential opening for negotiations aimed at ending the conflict involving Iran, the United States, and Israel.Iranian and Qatari officials have held several days of consultations, with a draft proposal circulating and additional meetings under consideration. Iranian Foreign Minister Abbas Araghchi has emphasized Tehran’s willingness to pursue diplomacy while maintaining its defensive position.No ceasefire agreement has been announced, and significant differences remain between the parties.The prospect of negotiations nevertheless reduced some of the geopolitical premium that has supported crude prices since the conflict began in February.Brent gained 13.6% in October, while WTI advanced 15.2%, reflecting continuing concerns about tanker security, refinery operations, and petroleum exports through the Strait of Hormuz.A tanker attack near the strait on October 30 reinforced those concerns, highlighting the vulnerability of commercial shipping through a corridor critical to global crude and refined product supplies.Physical supply conditions remain constrained despite Monday’s decline.The chief executive of Abu Dhabi National Oil Company recently estimated that nearly one billion barrels had been drawn from global petroleum inventories since disruptions to shipping through the Strait of Hormuz began.Saudi Arabia increased crude exports during October compared with September, according to ship-tracking assessments, suggesting that some regional producers have found ways to maintain shipments despite continued security threats.However, rebuilding inventories and restoring normal transportation patterns could require additional time even if hostilities ease.Goldman Sachs raised its oil price forecasts over the weekend, warning that Brent could reach $140 per barrel in 2027 under a scenario in which Gulf production remains 3.5 million barrels per day below its 2025 average.That projection represents a conditional supply disruption scenario rather than the bank’s base-case forecast.For energy investors, lower crude prices could reduce near-term revenue expectations for upstream producers while easing feedstock costs for refiners and fuel expenses for transportation companies.Natural gas and LNG markets may also respond to improvements in regional shipping security.The broader investment implications will depend on whether negotiations translate into measurable increases in petroleum exports and more reliable commercial shipping.Monday’s decline demonstrates the sensitivity of crude markets to diplomatic developments, but sustained price stabilization will require progress in restoring physical supply and rebuilding depleted inventories.About Oil & Gas 360 Oil & Gas 360 is an energy-focused news and market intelligence platform delivering analysis, industry developments, and capital markets coverage across the global oil and gas sector. The publication provides timely insight for executives, investors, and energy professionals. Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.