Oil Prices Slip as US-Iran Diplomatic Efforts Ease Supply Fears

Brent crude futures fell 0.7% to $114.54 a barrel on Thursday, retreating from a six-month high, as renewed diplomatic efforts between Washington and Tehran raised hopes of ending the Middle East war. WTI crude dropped 0.9% to $101.81. Iran's Foreign Minister Abbas Araghchi said Tehran continues to give diplomacy a chance, while the Wall Street Journal reported that U.S. President JD Vance had reached out to Iranian national security official Mohsen Rezaei. President Donald Trump confirmed negotiations were underway through mediators but said he did not know whether they would succeed. The prior session's rally followed reports of Houthi attacks on Saudi Arabia's largest oil refinery and a decline in U.S. crude inventories. Despite intensified clashes, Kpler and Vortexa data show regional energy flows have recovered to near pre-war levels. Analysts caution that supplies will tighten further in coming weeks even if a peace deal is reached.