Oxygen fugacity and water content are crucial parameters for many chemical and physical properties of the Earth's mantle, for example bearing on fluid type, melting initiation, and deformation. However, the exact behaviour of Fe3+ and H during melting and metasomatism is still under debate. Here, the Fe3+/ΣFe ratio (Mössbauer and EMP) and water content (FTIR) of peridotite minerals are examined in mantle xenoliths from Kilbourne Hole (KH), NM, and Dish Hill (DH), CA (USA). These spinel peridotites have compositions consistent with partial melting with variable degrees of metasomatism (undetectable to cryptic to modal). Pyroxenites also allow to examine melt-rock reactions. Bulk-rock Fe2O3 content of the KH peridotites correlates with indices of melting (positive with bulk-rock Al2O3 and Cpx Yb contents, and negative with spinel Cr#) confirming that Fe3+ behaves as an incompatible element during melting. Correlations of the Fe3+/ΣFe ratio of minerals with these indices, however, indicates that Fe3+ is incompatible in Cpx but compatible in Opx and spinel during melting. Water contents in olivine, Cpx and Opx from most KH peridotites can be explained by partial melting and correlate negatively with the Fe3+/ΣFe ratio of spinel and Opx but positively with that of Cpx. This indicates partial control of Fe3+ on the incorporation of H in pyroxene, but not related to a redox equilibrium in Cpx. The higher Fe3+/ΣFe ratio of spinel in the metasomatized KH and DH peridotites, and in the pyroxenites confirms that oxidation characterizes modal metasomatism. Metasomatism, however, is not necessarily accompanied by water addition.