Oil prices fall amid talks in Tehran — Channel NewsAsia

Oil prices fell on October 27 amid hopes of easing tensions in the Middle East following talks in Tehran, Iran. At the same time, Brent prices remained near six-month highs due to attacks on Saudi Arabia and risks to supplies, Channel NewsAsia reports.

As of 00:00 GMT, Brent crude futures fell by 66 cents, or 0.57%, to $115.15 per barrel. U.S. West Texas Intermediate crude lost 44 cents, or 0.43%, and traded at $101.32 per barrel.

Talks in Tehran

Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on October 26 aimed at reducing tensions in the region. Saudi Arabia said the purpose of the visit was to establish open channels for negotiations in order to “prevent a return to military escalation.”

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According to Iranian state media, the four countries agreed to continue talks to strengthen cooperation on peace and security issues. Expectations of a possible settlement of the conflict reduced concerns about disruptions to oil supplies and put pressure on prices.

Risks in the Strait of Hormuz

The decline in prices was limited by new attacks by Iran-linked Houthis on Saudi Arabia. According to a Washington-based think tank that has tracked maritime security incidents worldwide since 2017, October became the worst month in terms of attacks on commercial shipping in the Strait of Hormuz and adjacent waters.

Before the conflict began in February, about one-fifth of global energy supplies passed through the Strait of Hormuz. Last week, Brent rose above $117 per barrel — the highest level since April — after a series of Iranian attacks on tankers near the strait. Prices also reached this mark on October 26.