Crude oil prices fell after Saudi, Turkish and Pakistani officials travelled to Tehran for talks on ending hostilities. A CNN report that US forces could strike Iran limited the relief, and the International Energy Agency warned of supply disruption into next year.
Brent crude traded at $114.85 per barrel at the time of writing, as renewed diplomatic efforts in the Middle East pulled oil lower. West Texas Intermediate stood at $100.87 per barrel.
Both benchmarks slipped from levels at the end of last week: Brent was over $117 and WTI over $103. Investing.com attributes the decline to peace hopes and traders taking profit. Continued Houthi attacks on Saudi energy infrastructure and Iranian strikes on tankers in the Strait of Hormuz still support prices.
SS WealthStreet founder and energy analyst Sugandha Sachdeva told Reuters that crude is seeing profit-taking after surging to multi-month highs, while the diplomatic push has raised hopes of a breakthrough in US-Iran negotiations.
However, a CNN report said US forces in the Middle East could attack Iran within 96 hours of President Trump giving an order. Trump suggested at the end of last week that he may choose escalation over negotiation.
Iran's president, who hosted the delegations, called for unity among Islamic nations and for acting as "a single force" against threats, according to an X post by the Iranian government. Such unity may be a challenge given that most Gulf states are US allies, which made them targets for Iranian attacks earlier in the year.
Investing.com says the chances of a peace deal soon remain remote. Earlier this week the International Energy Agency warned that the war's disruption to global energy supply would extend into next year.
Source: Investing.com
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