{"id":74028,"date":"2026-11-02T16:08:16","date_gmt":"2026-11-02T20:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-7-as-trump-signals-potential-iran-peace-deal-treasury-trims-borrowing-estimates\/74028\/"},"modified":"2026-11-02T16:08:16","modified_gmt":"2026-11-02T20:08:16","slug":"oil-prices-plunge-7-as-trump-signals-potential-iran-peace-deal-treasury-trims-borrowing-estimates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-plunge-7-as-trump-signals-potential-iran-peace-deal-treasury-trims-borrowing-estimates\/74028\/","title":{"rendered":"Oil Prices Plunge 7% as Trump Signals Potential Iran Peace Deal; Treasury Trims Borrowing Estimates"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> plummeted over 7%<\/strong> on Monday, with <strong>U.S. WTI settling at $96.46\/bbl<\/strong> and <strong>Brent at $104.77\/bbl<\/strong>, as hopes for a diplomatic resolution to the Iran conflict intensified.<\/li>\n<li><strong>President Donald Trump<\/strong> told Axios he is in <strong>&quot;no rush&quot;<\/strong> to decide on restarting active warfare against Iran, emphasizing that recent signals indicate Tehran may be willing to negotiate a deal.<\/li>\n<li>The <strong>U.S. Treasury Department<\/strong> lowered its <strong>Q4 borrowing estimate to $618 billion<\/strong>, down from the previous $628 billion forecast, while maintaining a projected year-end cash balance of <strong>$850 billion<\/strong>.<\/li>\n<li>On the eve of the <strong>2026 U.S. Midterm Elections<\/strong>, President Trump issued a final wave of &quot;complete and total&quot; endorsements for Republican candidates across dozens of states, including <strong>Alabama, Arizona, and Pennsylvania<\/strong>.<\/li>\n<\/ul>\n<h2>Energy Markets React to Diplomatic Signals<\/h2>\n<p>Global energy benchmarks experienced a sharp sell-off on Monday as geopolitical risk premiums evaporated following comments from the White House. <strong>U.S. Crude Oil Futures<\/strong> settled at <strong>$96.46 per barrel<\/strong>, a decline of <strong>$7.66 or 7.36%<\/strong>, while <strong>Brent Crude Futures<\/strong> dropped <strong>$8.66 to finish at $104.77 per barrel<\/strong>. The downturn was accelerated by reports that <strong>Vice President JD Vance<\/strong> had initiated high-level communications with Iranian security officials, sparking investor optimism that the eight-month conflict could be nearing a resolution.<\/p>\n<p>President Trump further cooled market tensions by stating that <strong>oil prices will &quot;go down further&quot;<\/strong> because the U.S. is &quot;winning with Iran.&quot; In an interview with Axios, the President noted that Iran has recently reiterated it will not pursue a nuclear weapon, providing a window for negotiations led by <strong>Qatari mediators<\/strong>. While Israeli Prime Minister <strong>Benjamin Netanyahu<\/strong> has reportedly pressed for immediate strikes following Tuesday&#39;s elections, Trump indicated a preference for letting diplomatic tracks play out.<\/p>\n<h2>Treasury Adjusts Financing Needs<\/h2>\n<p>The <strong>U.S. Treasury Department<\/strong> announced on Monday that it now expects to borrow <strong>$618 billion<\/strong> in privately-held net marketable debt during the October\u2013December 2026 quarter. This figure is <strong>$10 billion lower<\/strong> than the estimate provided in August, a revision attributed primarily to a higher-than-expected cash balance at the start of the quarter. Despite the slight reduction in the current quarter, the Treasury projected a substantial <strong>$800 billion<\/strong> borrowing requirement for the first quarter of 2027.<\/p>\n<p>The department&#39;s end-of-December cash balance is still targeted at <strong>$850 billion<\/strong>. Market participants are now looking toward Wednesday\u2019s <strong>Quarterly Refunding<\/strong> announcement for further details on how the Treasury will manage its auction sizes across various maturities. The fiscal update comes as the U.S. continues to navigate a high-deficit environment, with some analysts projecting the annual deficit could exceed <strong>$2 trillion<\/strong> for the 2026 fiscal year.<\/p>\n<h2>Election Eve Endorsements<\/h2>\n<p>With the <strong>2026 Midterm Elections<\/strong> set for Tuesday, November 3, President Trump utilized his social media platforms to issue a massive slate of endorsements. The President targeted voters in battleground states and Republican strongholds alike, urging &quot;Great Patriots&quot; to get out and vote. Specific endorsements included <strong>Congressman Andy Harris<\/strong> in Maryland and <strong>Congresswoman Julie Fedorchak<\/strong> in North Dakota, alongside broader &quot;complete and total&quot; endorsements for GOP tickets in states such as <strong>Texas, Florida, Georgia, and Wisconsin<\/strong>.<\/p>\n<p>The outcome of tomorrow&#39;s vote is expected to serve as a referendum on the administration&#39;s handling of the Iran conflict and domestic economic policy. Analysts suggest that a Republican sweep could embolden the President&#39;s &quot;dual-track&quot; approach to Iran, while a shift in House or Senate control might introduce new legislative hurdles for military funding and executive maneuvers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Crude oil prices plummeted over 7% on Monday, with U.S. WTI settling at $96.46\/bbl and Brent at $104.77\/bbl, 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