On Tuesday, oil prices fell with Brent crude futures for December delivery dropping 0.87% to $114.80 per barrel, while U.S. West Texas Intermediate futures for June decreased 0.86% to $100.88 per barrel.
This decline followed diplomatic discussions involving Saudi Arabia, Turkey, Pakistan, and Iran, aimed at reducing regional tensions exacerbated by attacks from Iran-backed Houthis on Saudi Arabia. The talks, which took place in Tehran, were described by Riyadh as efforts to maintain open diplomatic channels and prevent further escalation. U.S.
President Donald Trump indicated in a recent interview that he is weighing options between negotiating with Iran or escalating military actions, which keeps the situation uncertain. Despite the positive diplomatic developments, concerns remain as Houthi attacks continue, suggesting that while the potential for a diplomatic breakthrough exists, the resolution of the conflict is still fragile.
This situation has led to a tempered outlook on global energy supply disruptions, contributing to the downward pressure on crude prices