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Source: Newsmaker.id
Global oil prices reversed course and settled lower on Tuesday (October 20, 2026), after briefly reaching their highest levels in five months. The decline came as investors assessed diplomatic developments involving Iran and Pakistan, which could potentially reopen negotiations between Tehran and Washington. However, geopolitical tensions across the Middle East continued to weigh on market sentiment following renewed Houthi attacks on Saudi Arabian infrastructure and reports of vessel attacks in the Gulf region.
Brent crude futures settled down 76 cents, or 0.69%, at $108.79 per barrel, after earlier climbing to $111.99, their highest level in five months. Meanwhile, US West Texas Intermediate (WTI) crude for November delivery, which expired on Tuesday, dropped $1.87, or 1.8%, to settle at $101.79 per barrel, retreating sharply from an intraday high of $110.48. The more actively traded December WTI contract also declined by 72 cents to $97.82 per barrel.
Market sentiment was influenced by a meeting between Iranian President Masoud Pezeshkian and Pakistan's army chief, Field Marshal Asim Munir, in Tehran. The discussions reportedly focused on regional developments and mediation efforts aimed at easing tensions between Iran and the United States. Pakistan previously helped facilitate an interim peace agreement in June, although the deal quickly collapsed after renewed fighting erupted between the two countries several weeks later.
Despite renewed diplomatic efforts, security risks surrounding the region's energy infrastructure remain elevated. Yemen's Iran-aligned Houthi group claimed responsibility for several attacks on Saudi energy facilities, airports, and military targets on Monday. The reported targets included an Aramco facility in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh, and Abha Airport. These developments have intensified concerns over the security of critical energy infrastructure and the potential disruption of oil supplies from the Middle East.
Looking ahead, crude oil prices are expected to remain highly sensitive to diplomatic developments and supply disruption risks. Progress in US-Iran negotiations could reduce the geopolitical risk premium that has supported oil prices, while further attacks on energy facilities or shipping routes could trigger renewed upward pressure. The volatility in energy markets is also attracting attention from global financial investors, as fluctuations in crude prices could influence inflation expectations and future monetary policy decisions by major central banks.(mrv)
Source : Newsmaker.id