World oil prices began to decline amid reports of a possible resumption of diplomatic talks between the United States and Iran. Traders are assessing the prospects for an agreement that could prevent new U.S. strikes on Tehran. Bloomberg reports, UNN writes.
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As of the morning of October 29, Singapore time, December futures for U.S. West Texas Intermediate (WTI) crude fell 0.9% to $101.91 per barrel. At the same time, according to the data provided, December Brent futures rose 1.3% to $115.32 per barrel.
The previous day, WTI rose by almost 3%. Overall, during October, Brent gained about 11%, reaching its highest level since April amid the prolonged conflict in the Middle East.
U.S.-Iran talks affect the oil market
Iranian Foreign Minister Abbas Araghchi said that Tehran continues to give diplomacy a chance. According to The Wall Street Journal, U.S. Vice President JD Vance contacted a representative of Iran's leadership, Mohsen Rezaei.
U.S. President Donald Trump confirmed that the talks are taking place through intermediaries, but their outcome remains uncertain.
We need to get the job done – either through a deal or by other means. We will find out whether the talks can be successful
According to Rebecca Babin, a senior trader at CIBC Private Wealth Group, even reports of contacts between senior officials may prompt investors to take profits and reduce the geopolitical risk premium priced into the market.
At the same time, markets continue to factor in the possibility of a new U.S. military operation against Iran after the U.S. midterm elections on November 3.