Oil prices ease as Iran talks temper supply fears, while Saudi risks persist
Brent slipped to $115.15 a barrel early Tuesday as talks in Tehran raised hopes of easing the Middle East conflict. Reported attacks and shipping risks kept losses limited.
Brent crude fell to $115.15 a barrel early Tuesday, 27 October, as talks in Tehran involving Iran raised hopes of easing the Middle East conflict, according to Reuters. Reported attacks on Saudi Arabia and risks to regional shipping limited the decline, leaving oil traders weighing diplomacy against potential supply disruption.
At 0000 GMT, Brent futures were down 66 cents, or 0.57%, while US West Texas Intermediate crude was down 44 cents, or 0.43%, at $101.32 a barrel, Reuters reported. Those were early Tuesday prices, following a volatile Monday session in which Brent briefly topped $117.
What happened at the Tehran talks
Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday. Saudi Arabia said the visit sought to open negotiating channels to prevent renewed military escalation. Iranian state media said the four countries agreed to continue discussions on peace and security cooperation, according to Reuters.
Saudi Defense Minister Prince Khalid bin Salman met Iranian President Masoud Pezeshkian and Supreme National Security Council Secretary Mohsen Rezaei, CNBC reported. Pakistan’s army chief Asim Munir and Turkish intelligence chief Ibrahim Kalin also participated. The meetings offered a possible diplomatic path, while the conflict and threats to energy facilities continued to weigh on the market.
Why Saudi and shipping risks still matter
Reuters said renewed attacks by Iran-aligned Houthis on Saudi Arabia limited oil’s losses. Separately, CNBC reported that the Houthis claimed on Monday to have fired missiles at Riyadh’s international airport and launched drones at oil pumping stations. Saudi Arabia had not confirmed those claimed strikes, CNBC said.
The risk extends to the Strait of Hormuz, which carried about one-fifth of the world’s energy supplies before the conflict, according to Reuters. Citing data compiled by a Washington-based maritime security think tank, Reuters said October had been the worst month for attacks on commercial shipping in the strait and nearby waterways since the group began tracking incidents in 2017.
Brent climbed above $117 last week after Iranian attacks on tankers around the strait, Reuters reported. CNBC said investors were also concerned that further attacks could disrupt Saudi production, refining or exports while global oil inventories had fallen sharply. Monday’s Brent settlement was $115.81 a barrel, down 91 cents; WTI settled at $101.76, down $1.51. Iranian state media said the four countries would continue talks, leaving their progress and the security of energy infrastructure central to the market’s next moves.
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Sources and context
- Oil eases on Middle East diplomacy hopes, Saudi attacks keep supply worries aliveReuters, republished by CNA
- Oil ticks lower as Saudi defense minister meets with Iran's president in Tehran to de-escalateCNBC
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.