"Oil" Drops Amid Hopes for Middle East De-escalation - Sarmad

Oil prices dipped slightly on Tuesday as hopes for a resolution to the US-Israeli conflict with Iran eased concerns about supply disruptions, but Brent crude remained near its six-month high after attacks on Saudi Arabia dimmed hopes for a quick stabilization in the region.

Brent crude futures fell 66 cents, or 0.57 percent, to $115.15 per barrel by 0000 GMT, while US West Texas Intermediate crude dropped 44 cents, or 0.43 percent, to $101.32 per barrel.

Saudi Arabia, Turkey, and Pakistan held talks with Iranian officials in Tehran on Monday in an effort to ease tensions in the Middle East. Saudi Arabia said the visit aimed to open negotiation channels “to prevent a return to military escalation in the region.”

Iranian state media reported that the four countries agreed to continue talks to enhance cooperation in the fields of peace and security.

Hopes for a resolution to the conflict dispelled some fears of supply disruptions, reducing the risk premium and putting downward pressure on oil prices.

However, losses remained limited given the fragility of peace prospects as Houthi attacks, backed by Iran, resumed against Saudi Arabia, a major oil producer.

Data compiled by a Washington-based research center tracking maritime security incidents worldwide since 2017 showed that October was the worst month for attacks on commercial ships in the Strait of Hormuz and adjacent waterways.

The war has cast a shadow across the Middle East, placing the Strait of Hormuz at the heart of the unrest. Before the conflict erupted in February, this narrow waterway carried about one-fifth of global energy supplies.