Middle East Tensions Weigh on Oil Markets Amid Diplomatic Efforts

Oil prices have stabilized as traders assess supply risks in the Middle East and monitor diplomatic efforts to end the US-Iran conflict.

The Brent crude futures contract traded near $104 a barrel after a three-day decline, while West Texas Intermediate was below $100.

Saudi Arabia issued air-raid alerts for Riyadh over the weekend, its first such warning since March and April, as well as warnings in Red Sea hubs including Yanbu, due to threats from Iran-backed Houthis in Yemen.

US President Donald Trump said he would 'probably' be open to a meeting with Iranian counterpart Masoud Pezeshkian on the sidelines of the UN General Assembly in New York this week.

The US leader is also scheduled to hold a summit with Chinese President Xi Jinping and may meet with Persian Gulf nations, while Qatar's prime minister said messages were being passed between the two sides.