Oil prices declined after President Donald Trump claimed an immediate "energy ceasefire" between Russia and Ukraine, though Ukrainian President Volodymyr Zelenskyy previously denied any finalized deal. Brent crude slipped below $104 a barrel and West Texas Intermediate traded around $91, reversing a two-day gain. The drop came despite escalating Middle East hostilities, including a Houthi attack on King Khalid International Airport in Riyadh that killed one and injured 12, and fresh tanker strikes near the Strait of Hormuz.
Ukrainian attacks on Russian refineries have tightened global diesel supplies, pushing prices higher ahead of November's midterm elections. Trump said he was working with President Vladimir Putin to release Russian diesel, while threatening to ban diesel exports and lifting limits on tax-exempt fuel. International Energy Agency Executive Director Fatih Birol urged governments to accelerate diesel releases, calling conditions worthy of "immediate attention" ahead of the IEA's Oct. 15 board meeting.
Brent is up around 70% this year as the US-Iran conflict persists. Major Middle Eastern producers have restored Hormuz exports near pre-conflict levels, but rising tanker attacks threaten flows. Saudi and Iranian foreign ministers discussed the escalation by phone before the latest airport strike.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing