RIYADH/TEHRAN, Oct 27 — Oil prices edged lower on Tuesday as the potential for a resolution in the United States (US)-Israeli war on Iran kept supply fears at bay, but Brent stayed close to six-month highs as attacks on Saudi Arabia lowered hopes of immediate stability in the region.
Brent crude futures were down ¢66, or 0.57 per cent, at US$115.15 a barrel as of 0000 GMT, while US West Texas Intermediate crude was down ¢44, or 0.43 per cent, at US$101.32.
Saudi Arabia, Turkiye, and Pakistan held talks with Iranian officials in Tehran on Monday to ease tensions in the Middle East. Riyadh said the visit sought to establish open negotiating channels to "prevent the return of military escalation".
Iranian state media reported that the four nations agreed to continue talks to strengthen cooperation on peace and security.
Hopes of a resolution in the conflict eased fears of supply disruption, lowering risks and pressuring oil prices.
However, losses were limited as the scope for peace looked fragile, with renewed attacks by Iran-aligned Houthis on key producer Saudi Arabia.
According to data compiled by a Washington-based think tank that has tracked maritime security incidents worldwide since 2017, October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways.
The war has rippled across the Middle East, placing the Strait of Hormuz at the center of the turmoil. The narrow waterway carried around a fifth of the world's energy supplies before the conflict erupted in February.
Last week, Brent prices surged to more than US$117 a barrel, the highest level since April, after a wave of Iranian attacks on tankers around the strait. Brent prices also touched US$117 on Monday.
Elsewhere, two industry sources close to the matter said that Russian refiners are raising diesel production in October after the government granted export quotas following the Kremlin's supply agreement with the US.
