Oil drops more than 4% and US crude dips below $100 as Iran offers a two-day plan to reopen the Strait of Hormuz

Oil prices fell sharply on Monday as talks mediated by Qatar raised hopes of a deal to end the war between the United States and Iran and ease supply disruptions in the Middle East, Reuters reported.

Brent crude futures were down $4.79, or 4.2%, at $108.64 a barrel by 5:20 a.m. ET, and U.S. West Texas Intermediate crude was down 4.2% at $99.71, according to Reuters. CNBC reported that WTI had slipped to $99.50 shortly before 6 a.m. ET. Brent ended October at its highest level in six months amid concern that the conflict could escalate again after Tuesday's U.S. midterm elections.

Iran's foreign ministry spokesman, Esmaeil Baghaei, said Monday that Iran could reopen the Strait of Hormuz within two days if Washington accepts its demands, shortening the seven-day timeline Iran first proposed in September, Euronews reported. Tehran's conditions include ending the war on all fronts, unfreezing Iranian assets abroad, lifting sanctions on its oil sector and ending the U.S. naval blockade of Iranian ports. Baghaei said messages were still being exchanged through mediators and that "everything depends" on the U.S. side. No U.S. agreement has been announced.

Secretary of State Marco Rubio said President Donald Trump prefers not to use military force and would like to resolve the war "diplomatically," according to CNBC.

Analysts cautioned that prices could climb again. Goldman Sachs raised its oil price forecasts on Sunday, citing elevated supply risks, and said Brent could reach $140 in 2027 if Gulf oil output stays 3.5 million barrels a day below its 2025 average, Reuters reported. The chief executive of Abu Dhabi's state oil company, ADNOC, said the world has drawn nearly 1 billion barrels from oil inventories since the war disrupted shipping through the strait.