Oil drops over 4pc on hopes of progress in talks on ending US-Iran war

LONDON, Nov 2:Oil fell more than 4% on Monday as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease.

Iranian negotiators have left talks with Qatari mediators aimed at ending the war with the United States, and a draft proposal is being circulated with a follow-up meeting possible, an official briefed on the talks said on Monday.

"The new month brought with it renewed hopes of a breakthrough in the Iranian stalemate," said ⁠TamasVarga of oil broker PVM.
Brent crude futures fell $4.79, or 4.2%, to $108.64 a barrel by 1020 GMT while US West Texas Intermediate crude traded at $99.71, down $4.41 or 4.2%.

Brent ended October at its highest in six months amid concerns that the US-Iran conflict could escalate again after Tuesday's US midterm elections.

"Lingering hopes of some form of diplomatic progress, combined with the absence of any meaningful military escalation over the weekend, have taken some of the immediate heat out of prices for now," said Tim Waterer, chief market analyst at KCM Trade.�"REUTERS