Oil prices dipped slightly on October 27, 2026, as diplomatic efforts in the Middle East raised hopes of easing tensions, but concerns over supply disruptions kept prices near six-month highs. Brent crude futures fell by 66 US cents, or 0.57%, to US$115.15 a barrel, while US West Texas Intermediate crude dropped by 44 US cents, or 0.43%, to US$101.32.
Saudi Arabia, Turkey, and Pakistan held talks with Iranian officials in Tehran on October 26, aiming to prevent further military escalation. The countries agreed to continue discussions to strengthen cooperation in peace and security, according to Iranian state media. While these diplomatic efforts eased some supply fears, attacks by Iran-aligned Houthis on Saudi Arabia limited the downward pressure on oil prices.
October has seen a surge in attacks on commercial shipping in the Strait of Hormuz and nearby waterways, marking the worst month for such incidents since 2017. The conflict has disrupted energy supplies, with the strait previously carrying around a fifth of the world’s energy before the war began in February. Earlier in October, Brent prices spiked to over US$117 a barrel, the highest level since April, following Iranian attacks on tankers.
Meanwhile, Russian refiners are increasing diesel production in October after the government granted export quotas following a supply agreement with the US, according to industry sources.