Oil Reverses Early Gains

Crude oil prices reversed earlier gains on Tuesday, falling more than 2% to below $95 per barrel and extending the previous session’s 7.4% decline. The move brought prices to their lowest level in three weeks as investors assessed developments in the Middle East and their potential implications for regional energy supplies.

The decline followed comments from U.S. President Donald Trump that Washington would end its financial support programme for Israel by year-end. Trump said the decision followed an agreement with Israeli Prime Minister Benjamin Netanyahu to discontinue the $4 billion aid programme, arguing that Israel no longer needed the assistance. He added that the U.S. would remain willing to provide other forms of support.

Regional Oil Supply Concerns Remain in Focus

Energy Secretary Chris Wright said overnight U.S. strikes on Iran’s Qeshm Island had not disrupted regional oil flows. He also indicated that additional refined products would be supplied from the Persian Gulf and India.

The comments offered investors further information about the immediate impact of the strikes on energy supply. With oil markets sensitive to developments across the region, the absence of reported disruption to regional flows formed part of the broader pressure on prices.

Iran Signals Greater Diplomatic Flexibility

Diplomatic developments also contributed to the changing market outlook. Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei had authorized discussions on issues that had previously been considered non-negotiable.

The signal suggested greater flexibility toward diplomacy at a time when geopolitical developments had been an important influence on oil market sentiment.

Oil Market Performance and Historical Context

Crude oil was reported at $95.86 per barrel on November 3, 2026, down 0.63% from the previous day. Despite the latest decline, the commodity remained 7.19% higher over the past month and 58.28% above its level a year earlier.

The historical record cited for crude oil shows an all-time high of $147.27 per barrel in July 2008. The latest price data is based on a contract for difference tracking the benchmark market for the commodity.

What Investors Should Watch Next

Oil market participants will continue monitoring developments in U.S.-Israel relations, diplomatic signals from Iran and any changes in regional energy flows. Further indications of whether tensions are easing or supply risks are increasing could influence the direction of crude prices.

The contrast between the sharp recent decline and the commodity’s substantial year-over-year gain also leaves the broader price trend in focus.