Oil prices fell on October 27, 2026, with Brent crude futures at $114.80 a barrel and US West Texas Intermediate at $100.88, as diplomatic discussions over the Middle East conflict coincided with continuing attacks and uncertainty over supplies.

Key Takeaways

  • Brent futures fell $1.01 a barrel, while West Texas Intermediate declined 99 cents.
  • Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on October 26.
  • Goldman Sachs outlined scenarios for both higher and lower oil prices, depending on shipping risks and exports.

Oil prices retreat as talks continue

Brent remained near its highest level since April after climbing above $117 a barrel the previous week following Iranian attacks on tankers near the Strait of Hormuz. It touched $117 again on October 26.

Saudi Arabia said the visit to Tehran was intended to open channels for negotiations and prevent further military escalation. Iranian state media said the four countries agreed to continue discussions on peace and security.

The talks offered a possible route to easing tensions, but attacks continued. The Houthis claimed they targeted an airport and oil facilities in Saudi Arabia on October 24. Saudi Arabia said the following day that it had intercepted additional missiles and drones.

Shipping risks and price scenarios

Before the war began in February, the Strait of Hormuz handled around a fifth of the world’s energy supplies. The Houthis also claimed attacks on Saudi Arabia’s East-West oil pumping stations, though Saudi Arabia had not confirmed those strikes.

Daan Struyven, Goldman Sachs’ co-head of global commodities research, said recent attacks showed how shipping disruptions could spread and intensify. The bank outlined a scenario in which oil could rise to $120 a barrel if attacks on vessels in the Middle East escalate, or fall toward $80 if exports return to normal levels.

Separately, the United Arab Emirates’ environment ministry said it had detected an oil spill from a tanker off Umm Al Quwain. The cause had not been disclosed, and authorities had not identified the vessel.

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