F Samsung Crude Oil Futures (03175) fell more than 4%, down 4.09% as of press time to HK$12.67, with a trading volume of HK$296,300.
On the news front, according to reports from CCTV News and other media, on November 2 local time, US President Trump said he is "in no hurry" to decide whether to restart military operations against Iran. Trump also stated that he will not launch strikes against Iran after the midterm elections, that US-Iran dialogue is currently progressing smoothly, and that a deal may be reached.
At the same time, Iran also signaled willingness for further negotiations. Iranian President Pezeshkian said the government is working to resolve issues through dialogue, that Iran's Supreme Leader has granted the government "certain authority" regarding peace talks, and that Iran is striving to resolve issues through dialogue.
Affected by the above news, international oil prices plummeted during intraday trading, with Brent crude oil futures closing down 7.63% in after-hours trading. A UBS market analyst said, "As expectations for diplomatic progress heat up, the geopolitical premium previously embedded in October's oil price rally has retreated," and noted that Iranian and Qatari officials have held talks for three consecutive days on ending the conflict with the United States and Israel.
However, Deutsche Bank pointed out in its latest research that investors may be underestimating the long-term impact of rising energy prices on global inflation. Even if oil prices retreat in the short term, the cost pressures caused by the earlier energy shock may still gradually transmit to other industries in the coming months, making inflation more stubborn than market expectations.
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