Key Takeaways
- Oil prices fell slightly as hopes for a resolution in the US-Israeli war on Iran eased supply fears.
- Attacks on Saudi Arabia kept supply worries alive, limiting oil price drops.
- Saudi Arabia, Turkiye and Pakistan held talks with Iranian officials in Tehran to ease regional tensions.
Oil prices eased on Tuesday, with Brent crude futures down 0.57% to $115.15 a barrel and US West Texas Intermediate crude down 0.43% to $101.32.
The potential for a resolution in the US-Israeli war on Iran provided some relief, reducing concerns about supply disruptions.
However, ongoing attacks by Houthis on Saudi Arabia, a key oil producer, kept supply worries alive, limiting the extent of oil price declines.
October has seen the worst month for attacks on commercial shipping in the Strait of Hormuz, according to data compiled by a Washington-based think tank.
The conflict has placed the Strait of Hormuz at the center of regional turmoil, as it carries about a fifth of the world’s energy supplies.
Brent prices surged to over $117 a barrel last week, the highest level since April, following a wave of Iranian attacks on tankers around the strait.
Brent prices also touched $117 on Monday, reflecting the ongoing tension in the region.
Saudi Arabia, Turkiye and Pakistan held talks with Iranian officials in Tehran on Monday to ease regional tensions.
The four countries agreed to continue talks with a view to strengthening cooperation in peace and security, according to Iranian state media.
