SINGAPORE: Crude oil prices fell on Tuesday as diplomatic efforts to resolve the US-Israeli war on Iran eased concerns over potential supply disruptions, although fresh attacks on Saudi Arabia kept prices near six-month highs.
Currently, Brent crude futures is down, 1.17%, at $114.64 per barrel. West Texas Intermediate (WTI) crude futures is down by $1.04, or 1.02%, to $100.72 per barrel.
Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday to reduce regional tensions. Saudi Arabia said the visit aimed to establish open channels for negotiations and prevent a renewed military escalation, according to CNBC.
Iranian state media reported that the four countries agreed to continue discussions to strengthen cooperation on peace and security.
The diplomatic engagement offered some relief to oil markets by reducing fears of prolonged disruptions to energy supplies. However, the prospect of an immediate return to stability remained uncertain following renewed attacks by Iran-aligned Houthi forces on Saudi Arabia, limiting the decline in prices.
Security risks have also intensified around the Strait of Hormuz and surrounding waterways. October has recorded the highest number of attacks on commercial shipping in the area, according to data compiled by a Washington-based think tank that has monitored maritime security incidents since 2017.
The conflict has placed the Strait of Hormuz at the center of global energy market concerns. Before the war began in February, the strategic waterway handled around one-fifth of the world’s energy supplies, making disruptions in the region a significant risk for global oil and fuel markets.
