Oil prices continued their decline on Monday, October 26, 2026, as diplomatic efforts in the Middle East raised hopes of avoiding a broader escalation in the US-Iran war. West Texas Intermediate (WTI) dropped toward $101 a barrel, following a 1.5% loss in the previous session, while Brent crude settled below $116.
Senior officials from Saudi Arabia, Pakistan, and Turkey traveled to Tehran for discussions, with participants agreeing to continue talks, according to the IRIB news agency. The diplomatic push has eased some concerns about further conflict, putting downward pressure on oil prices.
The market reaction reflects growing optimism that the recent tensions may not spiral into a wider regional confrontation. However, traders remain cautious, as the situation is still fluid and could shift rapidly.