Oil eases on Gulf diplomacy hopes, Saudi attacks keep supply worries alive

Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday aimed at easing tensions in the West Asia. Saudi Arabia said the visit sought to establish open negotiating channels to "prevent the return of military escalation". The four countries agreed to continue talks with a view to strengthening cooperation in peace ‌and security, Iranian state media reported. Hopes of resolution in the conflict erased some fears of supply disruption, lowering risks and pressuring oil prices.

However, losses were limited as scope for peace looked fragile, with renewed attacks by Iran-aligned Houthis on key producer Saudi Arabia. October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways, according to ​data compiled by a Washington-based think tank that has tracked maritime security incidents worldwide since ‌2017. The war has rippled across the West Asia, placing the Strait of Hormuz at the center of the turmoil.

The narrow waterway carried ​around ‌a fifth of the world's energy supplies before the conflict erupted in February. Last week, ‌Brent prices surged to more than $117 a barrel, the highest level since April, after a wave of Iranian attacks on tankers around the strait. ‌Brent ​prices touched $117 on Monday ​as well. Elsewhere, Russian refiners are raising diesel production in October after the government granted export quotas following the Kremlin's supply agreement with ‌the US, two ​industry sources close to the matter said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: Oct 27 2026 | 8:04 AM IST