Oil Retreats From Near Six-Month Highs on Hopes of Easing US-Iran Hostilities

Crude oil prices fell on Monday, pulling back from near six-month highs reached last week, as hopes grew for de-escalation between the United States and Iran, though continued attacks on Saudi Arabia kept investors cautious. US West Texas Intermediate futures were down $1.76, or 1.7%, at $101.51 per barrel by 0744 GMT. Brent crude fell $1.49, or 1.28%, to $115.23. On Friday, prices settled nearly $3 higher after Houthi attacks in Saudi Arabia raised supply concerns; Brent ended the week up 6% and WTI 2.3% higher. Qatari mediators traveled to Tehran on Sunday to help de-escalate regional tensions in coordination with the US, an official said. Top officials from Mecca Pact countries Saudi Arabia, Turkey and Pakistan were set to meet Iran's leaders in Tehran on Monday. Despite mediation talks, Houthi attacks continued over the weekend, with the group saying it struck pumping stations on Saudi Arabia's East-West pipeline and Riyadh airport. Saudi Arabia said Sunday it intercepted more missiles and drones. Vanda Insights founder Vandana Hari said the reprieve in hostilities "may prove temporary," noting President Donald Trump has not dispelled expectations that strikes on Iran could follow the November 3 midterm elections. "We therefore expect volatility to remain elevated, with risks still skewed to the upside," she said.