News Maker 23

Oil prices moved lower in volatile trading on Tuesday (October 27, 2026) as investors assessed growing diplomatic efforts to ease tensions in the Persian Gulf. Market attention also turned to Israel’s election and upcoming political developments in the United States, both of which could influence the next phase of the conflict with Iran.

Brent crude traded below US$115 per barrel after falling nearly 1% in the previous session, while West Texas Intermediate (WTI) hovered around US$101 per barrel. Senior officials from Saudi Arabia, Pakistan, and Turkey traveled to Tehran for talks with the Iranian government, with all sides agreeing to continue discussions.

Diplomatic activity is also set to continue at a higher level. Russian President Vladimir Putin is scheduled to meet Iranian President Masoud Pezeshkian and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani on the sidelines of an energy summit in Moscow. The developments have raised hopes that tensions could be contained through negotiations.

However, risks to energy supplies remain elevated. Crude flows have recovered to near pre-war levels, but shipping costs remain high. At the same time, regional tensions persist after the Saudi-led coalition said it had destroyed four drones and three ballistic missiles launched by Houthi forces toward the kingdom.

Iran has also reiterated several conditions for ending the conflict with the United States. Tehran has reportedly shown flexibility toward a proposal to reopen the Strait of Hormuz, provided that US restrictions on Iran are lifted within seven days. The waterway remains one of the world’s most critical routes for global energy trade.

Geopolitical uncertainty continues to leave oil prices vulnerable to sharp swings. Brent has surged by around 90% so far this year as the US-Iran conflict disrupted energy flows and drew Houthi forces deeper into the confrontation. Markets are now watching Israel’s election, the Federal Reserve’s policy decision, and the US midterm elections on November 3 for the next major catalysts.

In the latest trading, December Brent futures fell about 1.1% to US$114.57 per barrel, while December WTI slipped around 1% to US$100.74 per barrel. Until there is clearer evidence of de-escalation and normalization of shipping routes, oil market volatility is likely to remain high.(mrv)

Source : Newsmaker.id