Crude oil prices fell about US$1 per barrel on Thursday (29/10), as hopes for a US-Iran peace negotiation eased investor concerns over supply disruption from Middle East escalation. West Texas Intermediate fell 0.92 dollars, or 0.9 percent, to 101.86 dollars a barrel, after touching an intraday low of 101.75 dollars. Brent fell 0.82 dollars, or 0.7 percent, to 114.50 dollars a barrel at 01:32 GMT. By our market data, Brent spot stood at $123.10 a barrel at the close of 27 October 2026.
Diplomacy weighs on prices
Yuki Takashima, an economist at Nomura Securities, said selling pressure dominated the market amid expectations that peace talks may resume. But the decline is still limited.
Iran has proposed a plan with a seven-day timeframe, though the record does not say what the plan contains. Markets had been bracing for the possibility of renewed conflict.
Houthi attacks cap the decline
Houthi attacks on Saudi Arabia and Yemen limited the fall. The Saudi-led coalition said it had destroyed a Houthi ballistic missile. The Saudi government had not directly confirmed an attack on a refinery with capacity of 550,000 barrels per day. Aden Airport was also cited in the reporting.
Possible US strikes on Iran after the 3 November midterm elections added another layer of uncertainty. Traders are weighing both the chance of a deal and the risk of escalation before the vote.
Inventories fall unexpectedly
US Energy Information Administration data showed crude inventories fell 1.9 million barrels in the week ending 23 October. An analyst poll had expected a rise of 15,000 barrels. Gasoline inventories rose 3.9 million barrels in the same period, against a poll expectation of a 900,000-barrel decline.
Related: Oil slips as hopes grow for ending Iran war; Brent at $115.15 · Brent slips below $110 as US-Iran hostilities may ease
Source: US Energy Information Administration | Data: FRED — St. Louis Fed
