Oil prices fall after reports of US contacts with Iran — The National

Oil prices declined on the morning of October 29 following reports of US diplomatic efforts regarding Iran. Brent fell to $114.10 per barrel at 7:48 a.m. UAE time after rising by more than 1% during the previous session. US WTI crude traded above $101 per barrel, The National reports.

Letter to the Iranian side

The Wall Street Journal, citing US officials, reported that US Vice President JD Vance had sent a letter to Mohsen Rezaei, chairman of Iran’s National Security Council. According to the publication, the aim was to resume peace talks.

US President Donald Trump told journalists that he had not instructed Vance to contact the Iranian side. According to him, the letter concerned medical supplies and other assistance for people in need.

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The diplomatic steps raised hopes for a settlement, but market participants continue to factor in uncertainty surrounding the conflict and the risk of further disruptions to oil supplies from the Middle East.

Volatility and UBS forecast

The previous day, Brent closed at $115.32 per barrel, gaining 1.3%. WTI rose 2.9% to $102.78 per barrel. Nick Stadtmiller, chief economist and head of research at Emirates NBD, noted that prices remain volatile because of events affecting regional production and infrastructure.

Swiss bank UBS expects Brent to remain near $110 per barrel at the end of the year. UBS analyst Giovanni Staunovo attributed the forecast to declining global inventories, the completion of a significant share of planned strategic reserve releases, high freight costs, a limited number of tankers, and China’s resumption of oil imports.