Oil prices dip after strong week as Iran tensions linger

Oil prices edged lower on Monday following a strong week of gains, as traders assessed supply risks amid ongoing tensions in Iran.

Brent crude futures for November delivery fell 0.4% to $78.10 per barrel by 08:30 GMT, while U.S. West Texas Intermediate (WTI) crude for October delivery declined 0.3% to $73.85 per barrel. Prices had surged last week on concerns over potential supply disruptions in the Middle East, but gains were pared as markets awaited further clarity on geopolitical developments.

Analysts noted that while Iran-related risks remain a key driver, the market is also weighing broader macroeconomic factors, including global demand concerns and the outlook for U.S. interest rates. The U.S. Federal Reserve’s upcoming policy meeting later this month is expected to influence oil market sentiment, particularly if signals of prolonged tight monetary policy emerge.

Iran’s nuclear program and regional tensions have historically contributed to volatility in oil markets, with traders closely monitoring any developments that could impact supply. The latest round of negotiations and regional dynamics continue to cast uncertainty over near-term price movements.

OPEC+ policy remains a secondary but relevant factor, with the group’s next meeting scheduled for late November. Analysts expect the cartel to maintain its current production targets unless demand conditions shift materially.

The broader commodity complex also showed mixed performance, with gold and industrial metals trading sideways amid cautious investor sentiment. However, oil’s recent strength has been supported by seasonal refinery maintenance and inventory drawdowns, which have tightened supply in key markets.

For now, the market remains in a consolidation phase, with traders balancing geopolitical risks against macroeconomic headwinds. Any escalation in Iran or a surprise shift in OPEC+ policy could quickly alter the trajectory of prices.