Oil Prices Head for Biggest Weekly Decline Since the COVID-19 Pandemic

2026, November 7

United States / Iran / International

International oil markets are heading towards their largest weekly decline since the beginning of the COVID-19 pandemic. Brent crude futures fell to approximately $97.84 per barrel during Friday's trading, putting the benchmark on course for a 17% weekly decline. US West Texas Intermediate crude was also heading towards a 13% weekly fall. The movement reflects growing expectations that the US–Iran conflict could move towards de-escalation following the Republican Party's major losses in the US midterm elections.

Investors are beginning to remove some of the geopolitical risk premium previously built into oil prices. However, attacks on shipping vessels and continuing uncertainty surrounding the Strait of Hormuz remain significant risks. A breakdown in diplomatic negotiations could quickly reverse the recent decline, while a successful agreement could improve global energy supply conditions and ease inflationary pressure on importing countries.