Iran's Supreme Leader Ali Khamenei has reportedly given the green light for talks with the United States, according to Il Sole 24 ORE. News of the decision pushed oil prices down 6.7%, the Italian business daily reported on Monday, 2 November 2026.
The same development weighed on natural gas, RaiNews reported, as markets reacted to the prospect of dialogue between Washington and Tehran. European and US stock markets were attempting a rebound on the day, according to la Repubblica.
Iranian President Masoud Pezeshkian said Khamenei had granted the government certain powers to negotiate with the US, Sky TG24 reported. ANSA also carried the report of the oil slump alongside the approval for talks.
The scale of the move in crude reflects how much of the market's risk premium has been tied to tensions between the two countries. A shift toward negotiations reduces the likelihood of supply disruption that traders had been pricing in, which explains why energy contracts fell so sharply on the day.
The reports available do not specify the scope of any talks, their timing, or what conditions might apply, and there was no detail on which officials would take part.
What to watch next: whether Washington confirms the opening, and whether the price decline holds once the initial reaction fades.
