Brent Retreats on Diplomacy Hopes

Brent crude prices climbed above $112 per barrel on Friday, approaching four-year highs amid concerns that the US could resume military strikes against Iran following reports that a senior commander had briefed President Donald Trump on potential military options. Trump has repeatedly warned that airstrikes on Tehran could resume following next week’s midterm elections. Meanwhile, Iranian officials confirmed that US Vice President JD Vance had sent a letter aimed at restarting peace negotiations. The global oil benchmark has gained more than 10% in October as the US-Iran conflict continues, while clashes involving Saudi Arabia and Iran-backed Houthi forces have intensified. Threats to shipping through the Strait of Hormuz also remain high, with tankers continuing to come under attack. However, regional crude exports have rebounded to near prewar levels, as producers discreetly transport oil cargoes through the strategically important waterway.

Brent crude fell toward $114 a barrel on Thursday, moving away from four-year highs as markets weighed renewed diplomatic efforts to prevent further US military action against Iran. US Vice President JD Vance reportedly contacted Iranian officials, while Foreign Minister Abbas Araghchi said Tehran remained open to diplomacy. President Donald Trump confirmed communication with Iranian authorities, although he described the outreach as focused on medical supplies and acknowledged uncertainty over whether negotiations would succeed. Earlier, reports indicated that US officials advised regional allies to prepare for possible military operations after the November midterm elections. Meanwhile, Europe plans to release 42 million barrels of oil reserves over the next three months, including a substantial volume of diesel, as part of efforts to increase available supply and moderate energy costs.

Brent prices fell toward $114 per barrel on Thursday, moving away from four-year highs as investors assessed renewed diplomatic efforts to prevent further escalation of the Middle East conflict. Reports suggested that US Vice President JD Vance had contacted Iranian national security official Mohsen Rezaei, while President Donald Trump confirmed that negotiations were underway through mediators but acknowledged uncertainty over their outcome. Iranian Foreign Minister Abbas Araghchi also reiterated that Tehran remained open to diplomatic solutions. Despite the pullback, Brent crude has gained more than 17% this month, supported by intensifying clashes involving Saudi Arabia and Iran-backed Houthi forces, alongside continued threats to shipping through the Strait of Hormuz. However, energy flows from the region have since recovered to levels close to those recorded before the war.