US crude oil prices fell below $89 a barrel on Monday, November 9, extending the previous week’s sharp decline as investors weighed renewed diplomatic efforts to end the conflict with Iran against ongoing disruptions across the Middle East.
West Texas Intermediate (WTI) crude declined approximately 2.9% to $88.17 a barrel, while international benchmark Brent fell 3.6% to $94.83, according to Reuters.
The decline followed one of the steepest weekly selloffs in oil markets since 2020, as expectations of a potential diplomatic agreement reduced some of the geopolitical risk premium built into energy prices.
Washington and Tehran Remain Divided
US President Donald Trump said additional large-scale military strikes against Iran were unlikely if Tehran agreed to a comprehensive deal.
His comments came ahead of a meeting with Qatar’s prime minister, Sheikh Mohammed bin Abdulrahman Al-Thani, who has been involved in diplomatic efforts between Washington and Tehran.
However, US Secretary of State Marco Rubio played down expectations of an imminent agreement, describing Iran’s proposed terms as unacceptable.
The negotiations remain unresolved, with significant differences over sanctions, maritime access and military operations.
Shipping Risks Persist in the Strait of Hormuz
Despite diplomatic efforts, security incidents continued across the region.
Iranian media reported fresh US strikes on Qeshm Island, while additional attacks involving commercial vessels were reported near the Strait of Hormuz, a major transit route for global energy supplies.
In Saudi Arabia, an administrative building belonging to Saudi Aramco sustained damage following a missile attack claimed by Yemen’s Iran-backed Houthi movement.
Saudi authorities reported limited damage and no casualties at the building.
The incidents underscore continuing security risks for energy infrastructure and maritime transportation, even as oil prices decline.
Recovering Exports Add Pressure to Prices
The recovery of crude exports from Persian Gulf producers has also contributed to weaker prices.
According to JPMorgan estimates cited by Reuters, the global oil market recorded a supply surplus of approximately 1.1 million barrels per day in September, widening to 1.4 million barrels per day in October.
Improving regional exports, increased production elsewhere and weaker demand have contributed to the changing supply balance.
Monday’s price movements reflected expectations surrounding diplomatic negotiations and recovering oil supplies, while military activity and shipping disruptions continued across the region.
