Oil falls more than 4% on Iran talks, with strikes still possible after Tuesday

U.S. crude futures fell 4.1% from Friday, to $99.81 as of 7:02 a.m. ET, after an Axios report that President Donald Trump wants more time for diplomacy with Iran before possibly resuming strikes after Tuesday's midterm elections, Bloomberg reported.

Brent crude, the global benchmark, fell 4.1%, to $108.83.

The United States and Israel have been at war with Iran since February, when they launched strikes that killed Supreme Leader Ali Khamenei, CNN reported on Oct. 31. The war had entered its eighth month, the network said.

The fighting has been mostly on pause for several months, with a strong sense in the United States and the Middle East that it could resume shortly after the midterms, NPR reported Friday.

This followed an Oct.28 Wall Street Journal report that said the United States had told several Arab countries on the Persian Gulf to prepare for a possible short, intense campaign after the midterms, citing people briefed on the conversations.

However, on Sunday Axios reported that Trump wants the talks to play out, while Israeli Prime Minister Benjamin Netanyahu is pressing him to strike Iran immediately after Tuesday.

Bloomberg reported that the push for talks tempered concerns about renewed hostilities, even as attacks continued on vessels around the Strait of Hormuz, the shipping lane out of the Persian Gulf.

Secretary of State Marco Rubio said over the weekend that Trump "hasn't made a decision" and that "we would prefer to do it peacefully," CNBC reported.

Trump told the Right Side Broadcasting Network on Sunday, "We've had such a victory, and we'll put it away very soon, one way or the other. Either they'll make a deal, or we'll just end it," CNBC reported.

Nasdaq futures up as AI fears ease

Ahead of the US market open, Nasdaq-100 futures were up 0.8% compared to Friday. S&P 500 futures were up 0.5%, and Dow Jones Industrial Average futures were up 0.5%.

The headline technology index closed down 3.5% on Friday, marking the second day of an AI-linked rout of US technology stocks, while the blue-chip S&P 500 index fell 1.8%.

On Monday, Reuters said technology and artificial intelligence stocks were steadying after a dismal October that had seen the Nasdaq-100 shed more than $2.5 trillion in market value, leaving it on the brink of a correction.

Apple shares were up 0.1% ahead of a conference call on its fiscal fourth-quarter results, which the company said were due at 5 p.m. ET.

ISM releases U.S. purchasing numbers

At 10 a.m. ET, the Institute for Supply Management releases its October survey of factory purchasing managers. The survey, which includes a gauge of the prices factories pay, shows whether U.S. manufacturing is growing or shrinking and is considered an indicator of inflation. September's reading was 54.5%. A reading above 50% means manufacturing is generally expanding, ISM said.