The Panama-flagged container shipping vessel Ten Neptune transits the Gulf of Oman off the coast of Khor Fakkan in the emirate of Sharjah in the east of the UAE on Oct. 13, 2026.

Futures for international benchmark Brent crude for January delivery fell 2.99% to $110.04 a barrel. U.S. West Texas Intermediate futures for December declined 3.43% to $100.55 per barrel.

Oil prices fell sharply early on Monday amid reports that both the U.S. and Iran are seeking diplomatic options to bring an end to the Middle East conflict.

U.S. Secretary of State Marco Rubio said that President Donald Trump prefers not to use military force and would like to resolve the Iranian war "diplomatically."

Trump "hasn't made a decision...what the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful. But we would prefer to do it peacefully," Rubio said, speaking to reporters over the weekend.

Iranian authorities also signaled that a deal is still possible, following two days of talks mediated by Qatar, as long as demands are implemented tangibly, according to Al Jazeera.

The news come following reports that both the U.S. and Iran are preparing for more military strikes after the midterm elections.

Reports from The Wall Street Journal and The New York Times indicate that the U.S. is preparing for possible renewed military actions after the Nov. 3 midterm elections.