Oil prices continued their downward trend on Monday, November 9, 2026, following their sharpest weekly decline since April 2020. Brent front-month futures dipped below $98 a barrel, trading at $97.97 per barrel during early Asian trade, after losing more than 16% in the previous week. The US West Texas Intermediate (WTI) crude oil was near $90. The drop came as traders weighed diplomatic efforts to resolve the US-Iran conflict against recent attacks in West Asia.
The recent price retreat followed a six-month high in late October, driven by expectations that a Democratic sweep in the US midterm elections would prevent further escalation in the conflict. However, mixed signals from the US have kept the market uncertain. US Secretary of State Marco Rubio dismissed the chances of a breakthrough in talks with Tehran, calling Iran's demands "unacceptable and, in some cases, 'outrageous and ridiculous.'" In contrast, US President Donald Trump suggested it was "highly unlikely" he would order further strikes on Iran if negotiations progressed.
Tensions in the region were further heightened by a projectile hitting a tanker in the Strait of Hormuz over the weekend. In Saudi Arabia, Iran-backed Houthi rebels attacked the capital Riyadh, damaging offices of state oil giant Saudi Aramco. The Saudi Press Agency reported minor damage and no casualties, while Saudi forces retaliated by destroying two missile launchers used in the attack. The Houthis have escalated their assaults on Saudi infrastructure since the US and Israel went to war with Iran in late February.
Adding to the volatility, Ukraine struck its sixth Russian oil refinery in a week. Despite the ongoing conflict, Russia plans to send a high-level delegation to US-mediated talks with Ukraine in Abu Dhabi starting Tuesday, hinting at potential diplomatic progress.