Today, oil continues to decline from six-month highs as the market hopes diplomacy can avert a renewed U.S.–Iran flare-up. Brent slipped below $115 a barrel after a near 1% decline in the prior session, and WTI trades around $101.

Cautious optimism came from talks in Tehran. On Monday, senior officials from Saudi Arabia, Pakistan and Turkey arrived there, and Iran's IRIB agency reported the parties agreed to further meetings. Market sources say Iran indicated it was willing to be flexible about reopening the Strait of Hormuz in exchange for the U.S. lifting restrictions within seven days. U.S. forces are currently blocking Iranian ports to choke oil exports while helping other Persian-Gulf producers' tankers transit.

Threats remain acute even though flows from the region have recovered to nearly pre-war levels and freight costs remain high. The market is entering a dense calendar that could sharply swing oil. Israeli elections are under way today, with Netanyahu promising to overthrow Tehran's regime with U.S. backing. At the same time, rival Gadi Eizenkot says Iran's nuclear program must be stopped, but regime change is "unrealistic." Meanwhile, Russian President Vladimir Putin is meeting Iran's president and Qatar's emir at an energy summit in Moscow—Russia is a key ally of Tehran. The Federal Reserve announces its rate decision on Wednesday, and the U.S. midterms follow on November 3; Trump has hinted that strikes on Iran could resume after the elections.

All this means oil is choosing between hope for diplomacy and fear of escalation. With the Israeli and U.S. votes ahead and Iran still under blockade, prices should remain high and be highly news-sensitive. If talks in Tehran produce concrete progress on Hormuz, Brent could fall well below $110; if talks fail, prices could return to recent highs.

Technical picture: buyers need to take the nearest resistance at $101 to target $105, above which a breakout will be difficult. The further target is the $109 area. On a drop, bears will try to seize control of $98; if that succeeds, a range break would hit bulls hard and push Oil to a $95 low with a potential extension to $92.