Oil Retreats on Middle East Peace Talks Despite Threat of New U.S. Strikes on Iran

Crude oil prices fell as renewed diplomatic efforts raised hopes for a Middle East peace deal, though reports of a possible U.S. strike on Iran and ongoing attacks on energy infrastructure kept markets on edge. Brent crude traded at $114.85 per barrel and West Texas Intermediate at $100.87, down from over $117 and $103, respectively, at the end of last week. Analysts attributed the decline to profit-taking after prices surged to multi-month highs. Officials from Saudi Arabia, Turkey and Pakistan traveled to Tehran to discuss ending hostilities, but a CNN report that U.S. forces could attack Iran within 96 hours of an order from President Trump offset those gains. Continued Houthi attacks on Saudi energy infrastructure and Iranian strikes on tankers in the Strait of Hormuz also supported prices. The International Energy Agency warned earlier this week that the war-driven global energy supply disruption would extend into next year.