Oil prices plunge 5% as hopes of US-Iran agreement weaken supply fears

Oil prices fell sharply on Monday, November 9, extending last week's steep losses as investors grew increasingly confident that Washington and Tehran could reach an agreement to end their conflict.

Brent crude dropped below $95 a barrel, while US crude approached $86, as President Donald Trump's latest comments reduced expectations of renewed American military strikes against Iran.

Price overview

During Monday's afternoon trading, Brent crude futures fell around 5% to $93.30 a barrel.

US West Texas Intermediate (WTI) declined approximately 4.5% to $86.70 a barrel.

Brent had already lost 16% last week, its steepest weekly decline since the early months of the COVID-19 pandemic.

Trump comments accelerate selling

Trump said further strikes against Iran were highly unlikely as long as negotiations continued to make progress, encouraging traders to reduce the geopolitical premium embedded in crude prices.

The remarks followed earlier warnings that Washington could resume military operations if diplomatic efforts failed.

However, attacks on commercial shipping near the Strait of Hormuz continued to raise questions about the security of regional energy exports.

Supply surplus adds pressure

Signs of improving Middle Eastern oil flows have reinforced expectations of a return to oversupply.

JPMorgan estimated that global oil supply exceeded demand by 1.4 million barrels per day in October, up from 1.1 million in September.

Market outlook

Brent faces immediate support around $93, followed by $90, while resistance stands near $96.

WTI could test $85 if selling continues.

Further diplomatic progress could deepen losses, although renewed shipping disruptions remain a significant upside risk.