Oil prices edged lower early on October 27, 2026, as diplomatic talks in Tehran raised hopes of easing the Middle East conflict. Renewed attacks on Saudi Arabia nevertheless kept supply concerns alive, leaving Brent crude close to its highest levels in six months.

Oil prices retreat in early trading

Brent crude futures fell 66 cents, or 0.57%, to $115.15 a barrel at 0000 GMT. US West Texas Intermediate crude declined 44 cents, or 0.43%, to $101.32 a barrel. These were early-session quotations, not closing settlements.

The modest pullback followed a rise above $117 a barrel last week, when Brent reached its highest level since April after Iranian attacks on tankers around the Strait of Hormuz. Brent also touched $117 on October 26.

The decline came amid hopes for a resolution to the US-Israeli war on Iran, rather than confirmation of an agreement or a restoration of secure shipping.

Tehran diplomacy faces continuing security risks

Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on October 26. The Saudi Foreign Ministry’s statement on the Tehran visit described the mission as an effort to de-escalate tensions and encourage dialogue and diplomatic solutions.

The four countries agreed to continue talks aimed at strengthening cooperation on peace and security, Iranian state media said. No date for the next round was specified.

Renewed attacks by Iran-aligned Houthis on Saudi Arabia underscored the continuing risks to regional stability. The Strait of Hormuz remained central to supply concerns: before the conflict began in February, the waterway carried around a fifth of the world’s energy supplies.

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