Global oil prices dropped slightly on Tuesday as diplomatic talks in Tehran raised hopes of easing tensions in the Middle East though continuing attacks in the region kept supply fears alive.
Brent crude fell 66 cents to $115.15 a barrel while US West Texas Intermediate (WTI) slid 44 cents to $101.32. Despite the drop Brent remained near six-month highs after touching $117 last week following Iranian attacks on oil tankers.
Saudi Arabia, Turkey and Pakistan met with Iranian officials in Tehran on Monday to establish negotiation channels and prevent further military escalation. Iranian state media confirmed the four nations agreed to continue discussions to maintain regional peace and security.
While diplomatic progress reduced immediate fears of supply disruptions also market recovery remains fragile. Renewed attacks on Saudi Arabia by Iran-aligned Houthi forces continue to threaten energy security.
Maritime security data shows October was the worst month for commercial shipping attacks near the Strait of Hormuz. The narrow passage previously carried nearly 20% of global energy supplies before the war broke out in February.
Meanwhile the Russian refiners are increasing diesel output this month after receiving export quotas under a supply deal reached with the United States.
