Oil prices fell more than 1% on Monday as Iranian and Qatari officials continued talks aimed at securing an agreement to end the US-Israeli war on Iran.

Brent crude futures dropped $1.59, or 1.40%, to $111.84 a barrel by 0011 GMT. US West Texas Intermediate (WTI) crude fell $1.56, or 1.50%, to $102.56 a barrel.

Brent had closed October at its highest level in six months. Investors remained concerned that the conflict between the United States and Iran could escalate again after Tuesday’s US midterm elections.

Tim Waterer, chief market analyst at KCM Trade, described the latest decline as a technical pullback following strong gains last week.

He said hopes of diplomatic progress and the absence of significant military escalation over the weekend had eased immediate pressure on oil prices.

However, Waterer warned that stronger rhetoric surrounding Iran could push Brent crude towards $120 a barrel after the midterm elections.

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Iran and Qatar Continue Diplomatic Talks

Iranian Foreign Minister Abbas Araqchi said on Sunday that the ongoing talks were progressing. He said the discussions aimed to continue consultations with Qatari mediators.

Araqchi added that Tehran remained prepared for both defence and diplomacy.

The discussions are taking place amid attacks on oil tankers travelling through the Strait of Hormuz. These incidents have increased global energy and shipping costs.

Saudi Oil Exports and OPEC+ Decisions

Saudi Arabia increased its crude oil exports in October compared with September, despite attacks by Iran-aligned Yemeni Houthi forces on its energy infrastructure. Two of three ship-tracking companies reported the increase.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, kept December production targets unchanged on Sunday.

The decision matched market expectations. The group is expected to consider further policy adjustments next year as it continues to face export disruptions linked to the Iran war.