Oil Falls on Hopes of US-Iran Diplomacy

2026-10-20 18:45 By Isabela Couto 1 min. read

Crude oil fell to $98 a barrel on Tuesday amid hopes of diplomatic progress between the US and Iran.

Pakistan’s army chief, Field Marshal Asim Munir, met with senior Iranian diplomatic and military officials in Tehran to discuss bilateral relations and the status of talks with the US.

Although officials from both sides have said in recent weeks that messages and proposals are being exchanged through mediators, the extent of their differences on key issues remains unclear.

US President Trump said earlier this month that US forces would not attack Iran before the midterm elections.

Meanwhile, attacks on tankers and strikes targeting Saudi Arabia have escalated.

At least 18 vessels have come under fire over the past two weeks.

On Tuesday, Iran’s IRGC said two “non-compliant” oil tankers had been struck in the Strait of Hormuz.

Foreign Ministry spokesperson Esmaeil Baqaei warned at a weekly news conference that Iran would respond to US attacks “in equal measure, if not more forcefully.”



News Stream
Oil Gains on US-Iran Uncertainty
Crude oil rose toward $99 per barrel on Wednesday, resuming its advance as investors assessed mixed reports on diplomatic progress between the US and Iran. Prices fell sharply on Tuesday after Pakistan’s army chief, Field Marshal Asim Munir, met with senior Iranian diplomatic and military officials in Tehran to discuss bilateral ties and the status of negotiations with Washington. However, a diplomat involved in the discussions dismissed reports that a deal was imminent, while confirming that efforts to end the conflict remain underway. Oil prices have gained more than 10% this month as intensifying hostilities involving Saudi Arabia and Iran-backed Houthi forces, as well as Russia and Ukraine raised supply risks further. At least 18 vessels have also come under attack in the Strait of Hormuz over the past two weeks. Despite these risks, oil flows from the Middle East have largely recovered to around 80% of prewar levels.
2026-10-20
Oil Falls on Hopes of US-Iran Diplomacy
Crude oil fell to $98 a barrel on Tuesday amid hopes of diplomatic progress between the US and Iran. Pakistan’s army chief, Field Marshal Asim Munir, met with senior Iranian diplomatic and military officials in Tehran to discuss bilateral relations and the status of talks with the US. Although officials from both sides have said in recent weeks that messages and proposals are being exchanged through mediators, the extent of their differences on key issues remains unclear. US President Trump said earlier this month that US forces would not attack Iran before the midterm elections. Meanwhile, attacks on tankers and strikes targeting Saudi Arabia have escalated. At least 18 vessels have come under fire over the past two weeks. On Tuesday, Iran’s IRGC said two “non-compliant” oil tankers had been struck in the Strait of Hormuz. Foreign Ministry spokesperson Esmaeil Baqaei warned at a weekly news conference that Iran would respond to US attacks “in equal measure, if not more forcefully.”
2026-10-20
Crude Oil Pulls Back
Crude oil fell 1% to below $97 a barrel on Tuesday after an unconfirmed report suggested that Qatar and Pakistan presented a new proposal to revive negotiations aimed at ending the Iran war. The news pushed prices down from four-week highs, as fighting intensified across the Middle East and Iran increased attacks on tankers in the Strait of Hormuz. Shipping risks remain a key concern, with maritime tracker Kpler reporting that at least 18 vessels had come under fire over the previous two weeks. Iran’s Revolutionary Guard Corps said on Tuesday that two oil tankers had caught fire after striking mines laid by its naval unit, according to the Tasnim news agency. Separately, Iranian Foreign Ministry spokesperson Esmaeil Baqaei warned that Tehran would respond forcefully to any US attack. US President Donald Trump said earlier this month that American forces would not strike Iran before the November 3 midterm elections.
2026-10-20