Brent Crude Dips to $114.80 After Tehran Talks

Oil markets softened Tuesday as investors weighed the potential impact of new diplomatic efforts to end the U.S.-Iran war. The move followed a meeting in Tehran on Monday involving officials from Saudi Arabia, Turkey, Pakistan, and Iran, who sought to defuse regional tensions. Despite the progress, price declines were modest because Houthi militants backed by Iran continued attacking Saudi Arabia over the weekend.

The conflict has driven up energy costs by threatening supply routes in the Middle East. Riyadh stated the discussions were designed to keep diplomatic channels open and prevent a new surge in hostilities. Iranian state media reported that the four nations agreed to continue engaging to advance regional peace and security.

The diplomatic activity coincides with mixed signals from Washington. President Donald Trump told Fox News on Sunday that he was close to deciding whether to strike a deal with Iran or intensify military operations. He suggested that additional attacks remained a viable option for the United States.

Qatari representatives, who have helped mediate talks between Washington and Tehran, also arrived in the Iranian capital on Sunday, according to Reuters. Their presence added to the diplomatic pressure on both sides to reach a resolution.

Futures for December-delivery Brent crude fell 0.87% to $114.80 per barrel. U.S. West Texas Intermediate futures for June dropped 0.86% to $100.88 per barrel. The limited decline reflects market skepticism about whether the current talks will lead to a lasting peace.

Traders remain cautious as they monitor the next steps in the negotiations. The outcome of the four-nation talks will determine if supply fears ease further or if prices rebound due to continued military friction in the region.