Oil prices fell on October 29, 2026, as traders assessed prospects for renewed diplomacy involving Iran alongside continuing risks to Middle East supplies. Brent crude futures dropped 1.23% to $113.90 a barrel, while U.S. West Texas Intermediate futures slipped 1.42% to $101.32.

Key Takeaways

  • Brent and WTI futures both declined on Thursday, October 29.
  • Iran’s foreign minister said Tehran remained open to diplomacy, but a senior Iranian official rejected proposals to end the conflict.
  • The EIA has warned that constrained export routes could contribute to volatile oil flows and prices.

Oil prices retreat amid diplomatic uncertainty

The decline came as prospects of renewed peace negotiations drew attention, though the price movement does not establish that diplomacy alone caused the fall.

Qatari mediators reportedly put forward a proposal to end the conflict involving Iran, the United States and Israel. A senior Iranian official rejected the proposals as unacceptable, while Iran’s foreign minister said Tehran remained open to diplomatic efforts and raised the possibility of accelerating a proposed seven-day peace plan if an agreement were reached.

Supply routes remain in focus

The possibility of Houthi attacks and further U.S. military action against Iran remained among the risks facing the oil market.

In its October 6 outlook, the U.S. Energy Information Administration said attacks on Saudi Arabia’s East-West pipeline had temporarily halted flows on a route used to bypass the Strait of Hormuz. The agency’s analysis of constrained Middle East oil flows warned that disruptions to export routes could contribute to continued volatility in physical supplies and prices.

Next milestone

The EIA’s next Short-Term Energy Outlook is scheduled for November 10, 2026.

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