On Monday, oil stocks fell broadly, with ConocoPhillips (COP.US) dropping 2.68%, Occidental Petroleum (OXY.US) declining 2.56%, Petrobras (PBR.US) falling 2.26%, Exxon Mobil (XOM.US) down 2.11%, BP (BP.US) slipping 1.96%, and Chevron (CVX.US) losing 1.49%.
Both Brent crude and U.S. WTI crude futures extended their declines, each dropping more than 6%.
Expectations for diplomatic progress between the United States and Iran have strengthened, leading to a release of the geopolitical risk premium that had accumulated over several weeks of sustained tensions surrounding the Strait of Hormuz.
The market is hoping for an agreement to end the Iran war.
On the news front, reports indicate that Trump is inclined to give diplomatic efforts with Iran more time and hold off on launching a new round of military action.
On November 2 local time, Iranian Foreign Minister Araghchi stated that if the United States accepts our conditions, the Strait of Hormuz will reopen and negotiations will resume.
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