Oil Prices Fall as Iran Diplomacy Eases Supply Concerns

ISLAMABAD: (News Desk) – Global crude oil prices edged lower on Tuesday as diplomatic efforts to ease the US-Israeli war on Iran raised hopes of reducing supply disruptions. However, fresh attacks targeting Saudi Arabia kept prices close to six-month highs. Brent crude futures fell 1.17% to $114.64 per barrel, while US West Texas Intermediate (WTI) crude futures dropped $1.04, or 1.02%, to $100.72 per barrel. Saudi Arabia, Türkiye and Pakistan held talks with Iranian officials in Tehran on Monday as part of efforts to reduce regional tensions. According to CNBC, Saudi Arabia said the visit aimed to establish open channels for negotiations and prevent a renewed military escalation. Iranian state media reported that the four countries had agreed to continue discussions focused on strengthening cooperation in peace and security. The diplomatic engagement provided some relief to oil markets by easing concerns over prolonged disruptions to energy supplies. Nevertheless, the possibility of a swift return to regional stability remained uncertain after renewed attacks by Iran-aligned Houthi forces on Saudi Arabia limited the decline in prices. Security concerns have also grown around the Strait of Hormuz and nearby waterways. According to data compiled by a Washington-based think tank that has monitored maritime security incidents since 2017, October has recorded the highest number of attacks on commercial shipping in the area. The Strait of Hormuz remains a critical chokepoint for global energy markets. Before the conflict began in February, the waterway handled around one-fifth of the world's energy supplies, leaving global oil and fuel markets vulnerable to any prolonged disruption.