Oil slips 1% as Iran diplomacy eases supply fears

Brent and US crude futures both lost ground on Tuesday, with Brent at $114.81 per barrel and West Texas Intermediate at $100.88. The declines followed recent gains as diplomatic contacts involving Iran, Saudi Arabia, Turkey and Pakistan raised hopes of reducing regional tensions, The Express Tribune reported.

The improvement in sentiment has not removed concerns about supply. Houthi attacks on Saudi Arabia have resumed, while Gulf exports have contracted for four consecutive weeks and Hormuz shipping flows were estimated at roughly 60% of normal. The report also cited global distillate stocks at nearly 5% below their five-year average, while noting that Brent had reached $117 on Monday and exceeded that level last week.