Oil Prices Ease as Hopes for US-Iran Peace Deal Offset Supply Concerns

PUKMEDIA

Oil field.

Oil prices fell by around %1 on Tuesday as hopes for a resolution to the US-Israeli war against Iran eased supply concerns, despite renewed attacks by Iran-aligned Houthis on Saudi Arabia.

According to Reuters, Brent crude futures fell by $1, or 0.86 per cent, to $114.81 a barrel by 04:18 GMT, while US West Texas Intermediate (WTI) crude dropped 88 cents, or 0.86 per cent, to $100.88. Both benchmarks had fallen by 1 per cent earlier in the session.

Saudi Arabia, Türkiye and Pakistan held talks with Iranian officials in Tehran on Monday in an effort to ease tensions across the Middle East. Iranian state media reported that the four countries had agreed to continue discussions aimed at strengthening cooperation on regional peace and security.

Last week, Brent crude surged above $117 a barrel, its highest level since April, following a wave of Iranian attacks on tankers near the Strait of Hormuz. Prices also touched $117 on Monday.

However, prospects for a peace agreement remained uncertain amid renewed attacks by the Houthis against Saudi Arabia, a major oil producer.

Data from a Washington-based think tank showed that October had been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways since it began tracking maritime security incidents in 2017.

The conflict has placed the Strait of Hormuz at the centre of the regional crisis. Before the war erupted in February, the narrow waterway carried around one-fifth of global energy supplies.

Gulf crude exports fell for a fourth consecutive week, while oil flows through the Strait of Hormuz remained at around 60 per cent of normal levels. Global distillate inventories were also nearly 5 per cent below their five-year average, the data showed.



PUKMEDIA