Oil falls about 1% after Tehran talks ease supply fears
Brent and U.S. crude slipped around 0.86% as diplomatic engagement in Tehran reduced immediate supply concerns.
Global oil prices fell by about one percent in Asian trading after diplomatic talks in Tehran reduced some of the market's supply worries, even as Houthi forces renewed attacks on Saudi Arabia.
Brent futures, the European benchmark, fell by one dollar, or 0.86 percent, to $114.81 a barrel at 04:18 GMT. U.S. light crude dropped by 88 cents, or 0.86 percent, to $100.88 a barrel.
Diplomatic talks in Tehran
Saudi Arabia, Turkey and Pakistan held talks in Tehran yesterday with Iranian representatives aimed at easing tensions in the Middle East. The discussions were seen by traders as a factor that softened immediate supply concerns despite continuing regional violence.
Brent had climbed above $117 a barrel last week, its highest level since April, after a series of Iranian attacks on tankers in the Strait of Hormuz. Yesterday Brent again reached $117 a barrel before easing back in Asian trading.
Market participants are weighing the competing forces of heightened geopolitical risk and the possibility of diplomatic de-escalation. For now, prices have moved modestly lower as news of the Tehran talks tempered a recent run-up, while the threat posed by renewed Houthi attacks continues to keep upside risks on traders' radars.
Photo: press material from the event
