Oil Eases as Middle East Diplomacy Hopes Offset Saudi Supply Risks

Oil prices edged lower Tuesday as prospects for a resolution to the US-Israeli war on Iran tempered supply fears, though Brent remained near six-month highs after renewed attacks on Saudi Arabia. Brent crude futures fell 66 cents, or 0.57%, to $115.15 a barrel as of 0000 GMT, while US West Texas Intermediate dropped 44 cents, or 0.43%, to $101.32. Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday aimed at easing regional tensions, with the four countries agreeing to continue negotiations. However, losses were capped as peace prospects remained fragile amid fresh attacks by Iran-aligned Houthis on Saudi Arabia. October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways, according to a Washington-based think tank. The waterway carried roughly a fifth of global energy supplies before the conflict erupted in February. Brent touched $117 on Monday, its highest since April, after a wave of Iranian attacks on tankers.