Oil prices fell for a second session as Iran's supreme leader discussed conditions for ending the war with the US. Saudi, Turkish and Pakistani officials held talks in Tehran, while UBS expects Brent to stay near $110 a barrel through year-end.
Crude oil prices fell for the second consecutive session on Tuesday, driven by a renewed diplomatic push to de-escalate tensions in the Middle East.
Brent futures, the international benchmark, were down 1.7% to $113.88 a barrel as of 11:10 a.m. ET. West Texas Intermediate futures were also 1.7% lower at $100.05 a barrel.
Tehran weighs conditions for ending the war
Iran's Supreme Leader Mojtaba Khamenei met with national security official Mohsen Rezaei to discuss the country's conditions for ending the war with the US, according to a Tuesday post on his social media account. According to the post, Khamenei said the current state of "neither war nor peace" needs to end.
Meanwhile, Saudi Arabia's defense minister and Iran's President Masoud Pezeshkian held direct talks in Tehran on Monday. Senior military and intelligence officials from Pakistan and Turkey, who are allied with the Saudis, also took part.
However, US President Donald Trump said in a Fox News interview on Sunday that he was approaching a decision on whether to strike a deal with Iran or intensify military operations.
UBS sees oil staying near $110
Saudi Arabia has come under repeated attack from Iran-allied Houthi militants in recent weeks, and the strikes threaten to disrupt Saudi oil exports, which have proven resilient during eight months of conflict.
UBS analyst Giovanni Staunovo said in a Tuesday note that Brent oil prices are expected to remain near $110 a barrel through the end of the year. He said global oil inventories have fallen by around 500 million barrels since February, and that commercial inventories will fall more sharply in the coming months if security conditions don't improve.
Source: CNBC
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