Oil prices fall as peace hopes offset fears of growing Middle East conflict

Oil futures retreated on Thursday after gains a day earlier, as reports of renewed diplomatic efforts eased some concern about Middle East supply risks. By 0132 GMT, Brent was at $114.50 a barrel, down 82 cents or 0.7%, while US WTI stood at $101.74, lower by $1.04 or 1.0%.

Business Recorder reported that US Vice President JD Vance had sent a letter to Iran’s security council chief in an effort to restart peace negotiations. The price decline was limited by continuing Houthi attacks and fears of possible US action against Iran; the Saudi-led coalition said it had intercepted a missile headed towards the kingdom’s east. Separately, US energy firms reduced crude inventories by 1.9 million barrels in the week to October 23, although gasoline stocks increased by 3.9 million barrels.