Oil Slides About 3% as Trump Signals More Time for Iran Diplomacy and OPEC+ Holds Output: What It Means for Energy Investors

Monday's drop shows how much of oil's recent price rests on war risk rather than on barrels, and why a single headline from the Gulf can move energy stocks.

Why did oil prices fall on Monday?

Oil fell about 3% in early Monday trading after President Trump signaled he wants to give diplomacy with Iran more time, lifting hopes that shipping through the Strait of Hormuz could recover. OPEC+ also confirmed on Sunday that it would keep its December output targets unchanged.

The Associated Press reported Brent crude, the global benchmark, down 3.3% at $109.66 a barrel early Monday, with U.S. crude down 3.3% at $100.64. A later AP update had Brent down 2.8% at $110.24 and U.S. crude down 3.1% at $100.85. Those are early Monday prices, before U.S. stock trading opened, and they can change quickly.

The National tied the slide to Trump's comments. Citing Axios, it reported that Trump told Israeli Prime Minister Benjamin Netanyahu he wanted to give diplomacy more time. Trump was also quoted as saying, "Either they'll make a deal, or we'll just end it." The AP reported that Iran's top diplomat said negotiators were in Qatar discussing a proposal that could reopen the strait within two days if the U.S. meets several conditions, and that no direct talks with the U.S. were being held.

Why do some reports say Brent closed near $118?

Because two different futures contracts were in the news. A futures contract is an agreement to buy or sell oil at a set price on a future date. FinanceFeeds explained that Brent's December contract expired Friday, Oct. 30, at $117.64, while the January contract, now the front month, settled at $113.43.