Oil Prices Ease as U.S. Seeks to Renew Diplomacy With Iran — 2nd Update
By Farhan Rafid and Anthony Harrup
Oil prices fell Thursday as traders assessed fresh U.S. efforts to revive peace negotiations with Iran, while persistent Middle East supply risks and the possibility of renewed military escalation limited losses.
December Brent crude futures slipped 0.4% to $114.88 a barrel, while December West Texas Intermediate settled down 0.8% at $102.00 a barrel.
U.S. Vice President JD Vance sent a letter to Mohsen Rezaei, secretary of Iran's Supreme National Security Council, in an effort to revive peace negotiations, The Wall Street Journal reported, citing U.S. officials and people familiar with the matter.
President Trump said Wednesday that he approved Vance's attempt to make contact. The discussions have focused on a possible framework for negotiations rather than a detailed peace proposal, the Journal reported.
"In my opinion, the administration is finally talking to the right person," Robert Yawger, commodity specialist at Mizuho Securities USA, said in a note. Rezaei's position "is probably second only to Iran's Supreme Leader," he added.
Meanwhile, the U.S. has told several Gulf Arab countries to prepare for a possible short, intense military campaign against Iran after next week's U.S. midterm elections, the Journal reported separately. Trump hasn't made a final decision on renewed strikes.
Saudi-led military coalition said early Thursday that its air defenses intercepted and destroyed another ballistic missile launched by Yemen's Houthi militants toward Saudi Arabia's Eastern Province, according to the Saudi Press Agency.
The latest interception followed the Houthis' claim earlier this week that they struck Saudi Arabia's Ras Tanura refinery with a ballistic missile. Saudi authorities haven't confirmed the claimed strike or any damage to the facility.
"The Saudi-led coalition's interception of another Houthi missile early Thursday shows that threats to regional infrastructure remain active despite the renewed push for negotiations," energy consulting firm Gelber & Associates said in a note.
Write to Farhan Rafid at farhan.rafid@wsj.com and Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 29, 2026 16:00 ET (20:00 GMT)
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