Oil prices fell on Tuesday, October 27, as diplomatic efforts involving Iran raised hopes of easing Middle East tensions, reversing part of last week's surge to six-month highs.
Brent crude settled at US$113.88 a barrel, down 1.67%, while US West Texas Intermediate (WTI) fell 1.83% to US$99.90. Brent had closed at US$116.72 on October 23, its highest settlement since April.
Senior officials from Saudi Arabia, Turkey and Pakistan met Iranian representatives in Tehran on Monday, agreeing to continue discussions aimed at strengthening regional peace and security. However, no ceasefire agreement was announced.
Meanwhile, Yemen's Iran-aligned Houthis claimed on Tuesday to have struck Saudi Arabia's Ras Tanura oil refinery with a ballistic missile, alleging the strike caused a fire. Saudi authorities had not confirmed the attack.
Shipping risks also remain elevated. According to figures reported by Reuters, the Washington Institute for Near East Policy recorded 28 confirmed and reported attacks on commercial vessels in the Strait of Hormuz and surrounding waters by October 23, the highest monthly total since monitoring began in 2017.
Despite the latest decline, crude prices remain near six-month highs as continuing attacks on energy infrastructure and commercial shipping threaten further supply disruptions.
