DUBAI: Global oil prices edged lower on Tuesday as diplomatic efforts to ease Middle East tensions raised hopes of a breakthrough, following talks between Iran, Saudi Arabia, Turkiye and Pakistan in Tehran a day earlier. However, continued attacks on Saudi Arabia and uncertainty over the conflict kept Brent crude near a six-month high.
According to Reuters, Brent crude futures fell 66 cents, or 0.57%, to $115.15 a barrel by midnight GMT. US West Texas Intermediate (WTI) crude declined 44 cents, or 0.43%, to $101.32 a barrel.
Saudi Arabia, Türkiye and Pakistan held talks with Iranian officials in Tehran on Monday in an effort to ease tensions across the Middle East.
According to Saudi Arabia, the visit aimed to maintain open channels for negotiations to prevent a return to military escalation.
Iranian state media reported that the four countries had agreed to continue discussions to strengthen cooperation in peace and security.
Hopes of a diplomatic breakthrough eased concerns about potential disruptions to oil supplies and pressure on global prices. However, the decline remained limited as prospects for peace appeared uncertain.
Attacks by Iran-aligned Houthi forces on Saudi Arabia, a major oil-producing country, further weakened expectations of an immediate regional de-escalation.
Data compiled by a Washington-based think tank that has tracked maritime security incidents worldwide since 2017 showed that October had been the worst month for attacks on commercial vessels in the Strait of Hormuz and nearby shipping routes.
The conflict has spread across the Middle East, placing the Strait of Hormuz at the centre of concerns over global energy security.
Before the conflict began in February, the narrow waterway carried about one-fifth of the world’s total energy supplies, making it a critical route for international oil and gas shipments.
Last week, Brent crude prices climbed above $117 a barrel following a wave of Iranian attacks on tankers near the Strait of Hormuz, reaching their highest level since April. Brent also touched $117 a barrel on Monday, underscoring continued market concerns over the security of regional energy supplies.
Despite Tuesday’s modest decline, prices remained elevated as traders weighed the prospects of diplomatic progress against the risk of further attacks and prolonged disruption to oil shipments.
