Brent Crude Plunges Nearly $9 as Iran's Khamenei Authorizes Peace Talks with US

Oil prices suffered one of their sharpest single-session drops in recent memory on November 2 after Iran's Supreme Leader Ali Khamenei granted Iranian officials the authority to hold peace negotiations with the United States, raising expectations that the conflict driving a war premium into crude prices could be nearing a resolution.

Brent crude settled at $104.77 per barrel, down $8.66 or 7.63 percent, after trading a range of $103.28 to $112.41 during the session. U.S. WTI crude settled at $96.46 per barrel, down $7.66 or 7.36 percent. The moves reflected traders rapidly unwinding the geopolitical risk premium that had been built into oil markets during the Iran war.

The catalyst was Khamenei's decision to delegate powers to Iranian officials specifically to engage in U.S.-Iran negotiations, a significant shift from Tehran's prior posture. Markets interpreted the move as a credible step toward a ceasefire or diplomatic settlement that could eventually restore Iranian oil supply and reduce regional supply disruption fears.