Oil prices dipped slightly on October 27, 2026, as diplomatic efforts in the Middle East raised hopes for a resolution to the US-Israeli war on Iran. 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. The potential for peace talks eased some supply concerns, but prices remained near six-month highs due to ongoing attacks on Saudi Arabia.
Saudi Arabia, Turkey, and Pakistan held discussions with Iranian officials in Tehran on October 26, aiming to de-escalate tensions. Saudi Arabia described the visit as an effort to establish open negotiating channels to prevent further military escalation. Iranian state media reported that the four countries agreed to continue talks to strengthen cooperation in peace and security.
Despite the diplomatic efforts, oil price losses were limited as the prospects for peace appeared fragile. Renewed attacks by Iran-aligned Houthis on key producer Saudi Arabia kept supply worries alive. October has seen the highest number of attacks on commercial shipping in the Strait of Hormuz and nearby waterways since 2017, according to a Washington-based think tank.
The war has disrupted energy supplies, with the Strait of Hormuz, carrying around a fifth of the world’s energy supplies before the conflict, at the center of the turmoil. Earlier in October, Brent prices surged to over US$117 a barrel, the highest level since April, following Iranian attacks on tankers around the strait. Brent prices touched US$117 on October 26 as well.
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.