Crude Oil Prices Fall Up To 1% On Hopes Of Middle East De-escalation

Crude oil prices fell by up to 1% on Tuesday, extending losses for a second consecutive session. Diplomatic talks in Tehran eased immediate concerns over supply disruptions. However, persistent security risks in the Middle East kept prices near six-month highs.

Brent crude futures, the international benchmark, dropped as much as 1.17%, or $1.36, to $114.45 per barrel. US West Texas Intermediate (WTI) crude declined by more than 1%, or $1.16, to $100.60 per barrel.

The decline followed diplomatic talks in Tehran, where representatives from Saudi Arabia, Turkey and Pakistan met Iranian officials to ease regional tensions.

Saudi officials said the visit aimed to establish open channels for negotiations and prevent renewed military escalation.

Reports indicated that all four countries agreed to continue dialogue and strengthen cooperation on peace and security.

Analysts said the recovery of Middle Eastern crude exports to near pre-war levels had eased some supply concerns. However, the possibility of further geopolitical escalation continues to pose an upside risk to prices.

Oil markets remain sensitive to developments around the Strait of Hormuz, a critical shipping route that handled about 20% of global energy shipments before hostilities began in February.

Renewed attacks by Iran-aligned Houthi forces on Saudi Arabia have limited the decline in crude prices. Iranian attacks on oil tankers near the strait pushed Brent above $117 per barrel last week, its highest level since April.

Brent briefly approached $117 again on Monday before settling lower.

Analysts expect crude prices to remain volatile as traders monitor regional security and oil supply flows. On the Multi Commodity Exchange (MCX), immediate support lies between ₹9,300 and ₹9,060, a key range for sustaining price momentum.

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