Oil Prices Slip Slightly Amid Hopes for Middle East Diplomatic Progress and Ongoing Saudi Attacks
Brent crude fell 0.6% to $115.15 a barrel as diplomatic talks aimed at de-escalating the US-Israeli-Iran conflict eased supply concerns, while renewed Houthi attacks on Saudi facilities kept market nerves high.
Oil prices edged lower on Tuesday as diplomatic talks in Tehran involving Saudi Arabia, Turkey, Pakistan and Iran raised hopes of easing tensions that have threatened global supply. Brent crude futures fell 66 cents, or 0.57%, to $115.15 a barrel, and U.S. West Texas Intermediate dropped 44 cents, or 0.43%, to $101.32.
Saudi officials said the meeting was intended to create open negotiating channels to "prevent the return of military escalation," and the four countries agreed to continue discussions to strengthen cooperation on peace and security, according to Iranian state media.
The prospect of a diplomatic breakthrough reduced fears of supply disruptions, but price declines were modest as the situation remained uncertain. Renewed attacks by Iran-aligned Houthi forces on Saudi oil infrastructure revived concerns about regional stability.
October has seen a surge in attacks on commercial shipping in the Strait of Hormuz and adjacent waterways, a pattern tracked by a Washington-based think tank that monitors maritime security incidents worldwide.
Last week, Brent prices rose above $117 a barrel, the highest level since April, after a series of Iranian attacks on tankers in the strait. The market remains sensitive to further developments.
In other news, Russian refiners are increasing diesel output in October after the government granted export quotas following a supply agreement with the United States, according to two industry sources.