Oil prices fluctuated after a two-day decline as traders weighed mixed signals on US-Iran diplomatic talks. Brent hovered near $103 a barrel, with West Texas Intermediate at $96, following a volatile session. Tehran and Washington are reviewing new mediator proposals to resolve disputes, though Iran's national security chief criticized the US response as "not satisfactory" on X.
The talks follow weeks of heightened tensions, including Iranian attacks on ships in the Strait of Hormuz and President Donald Trump threatening renewed strikes post-election. While oil tumbled Monday on hopes of progress, Tuesday saw choppy trading as deep divisions raised doubts about breakthroughs. Brent has surged 70% this year due to war-driven supply disruptions, while diesel and gasoline prices rallied globally, potentially affecting midterm election dynamics.
Analyst Pavel Molchanov of Raymond James noted the election serves as a calendar milestone influencing White House strategy, adding the administration now has "greater flexibility" as gasoline price impacts were absorbed pre-vote. Trump signaled restraint, stating the US has no immediate plans to strike Iran but remains "locked and loaded" if necessary. Saudi Aramco's CEO Amin Nasser announced plans to maximize quarterly production, boosting shipments near prewar October levels via Ras Tanura and Yanbu.
The American Petroleum Institute reported a 5.3 million barrel decline in US crude inventories for the week.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing