Oil falls more than 7% as Iran signals talks: Brent at $104.77, what it means for petrol in Pakistan

Brent crude fell $8.66, or 7.63%, to $104.77 a barrel on Monday 2 November 2026, and US crude (WTI) lost $7.66, or 7.36%, to $96.46, Reuters reported through Business Recorder. Brent touched $103.28 during the day.

Why oil fell

• Iran: President Masoud Pezeshkian said Supreme Leader Ayatollah Mojtaba Khamenei has given the government authority for peace talks, and that Tehran "will try to resolve the problem with dialogue", state media reported. Iranian negotiators have held several days of talks with Qatari mediators, who flew to Tehran on Monday evening to meet Foreign Minister Abbas Araqchi about a possible US-Iran deal.
• Washington: President Donald Trump said Iran wants a deal to end the war and that one "could happen".

The fall reverses part of last week's rise. Brent ended October at a six-month high on fears that fighting could widen after Tuesday's US midterm elections.

Not everyone is convinced

Raymond James analyst Pavel Molchanov said there is reason for scepticism after "false dawns" in recent months. UBS's Giovanni Staunovo said the market is reacting "with extreme sensitivity" to Middle East news. Goldman Sachs said on Sunday that Brent could reach $140 in 2027 if Gulf output stays 3.5 million barrels a day below its 2025 average.

The war began at the end of February. ADNOC chief executive Sultan Al Jaber said the world has drawn nearly 1 billion barrels from stockpiles since shipping through the Strait of Hormuz was disrupted.

What it means for petrol in Pakistan

Pakistan imports most of its crude and fuel, so the world price feeds into the next fuel review with a lag. The government cut petrol by Rs 3.40 to Rs 374.51 a litre and diesel by Rs 7.76 to Rs 395.20 from 3 November, a decision taken before Monday's fall; see our report on the cut. Refineries are also absorbing Rs 15 a litre on petrol under a separate government arrangement.

If Brent stays near $105 rather than Friday's $113.43, the next review has room for relief. A one-day fall is not a trend, though, and Monday showed how quickly the price swings on a single statement.

Track the daily numbers on our petrol price page and diesel price page, and work out your monthly fuel bill with the fuel cost calculator.