Oil prices fall for the second consecutive day – talks on Iran raise hopes of an end to the escalation
Kyiv • UNN
Oil prices are declining amid diplomatic talks concerning the war between the United States and Iran. Brent fell below $116, while WTI dropped to approximately $101.
World oil prices are falling for the second day in a row amid intensified diplomatic talks over the war between the United States and Iran. Investors hope that the negotiations will help prevent further escalation of the conflict in the Middle East. Bloomberg reports, according to UNN.
Details
West Texas Intermediate crude fell to approximately $101 per barrel after dropping 1.5% during the previous session. Meanwhile, the price of the benchmark Brent crude fell below $116.
The talks in Tehran involving representatives of Saudi Arabia, Pakistan, and Turkey prompted the price decline. The parties agreed to continue diplomatic consultations.
Risks of a new escalation remain
Despite diplomatic efforts, the situation in the Middle East remains tense. Saudi Arabia reported the destruction of three drones in Riyadh, while Lebanon's "Hezbollah," according to Reuters, is preparing for a possible new conflict.
Since the beginning of the year, Brent crude has risen by almost 90% due to the US war with Iran, disruptions in energy supplies, and attacks by Yemen's Houthis.
Additional pressure on the oil market may come from Israel's parliamentary elections on October 27, the US Federal Reserve's decision on interest rates, and the US midterm congressional elections on November 3.
On Tuesday, a meeting is also scheduled between vladimir putin, the President of Iran Masoud Pezeshkian, and the Emir of Qatar at an energy summit in moscow.