Brent crude prices extended their decline for a second session on October 27, moving below $115 per barrel as diplomatic talks involving Iran raised hopes of easing tensions in the Middle East.

Brent crude futures fell around 0.7% to $114.94 per barrel in early trading. US West Texas Intermediate (WTI) crude also lost 0.7%, trading at $101.05 per barrel.

The price drop followed discussions in Tehran involving Saudi Arabia, Iran, Pakistan and Turkey. The countries discussed ways to reduce regional tensions and create opportunities for further negotiations. Progress on this front could lower the risk of a wider conflict disrupting global oil supplies.

However, concerns over supply remain. Continued attacks linked to Yemen-based Houthi militants have raised questions about the safety of Saudi Arabia’s energy infrastructure and transport networks. Any damage to oil fields, pipelines or export facilities could restrict supplies and push prices higher.

The Strait of Hormuz is another major concern for energy markets. Before the conflict began in February 2026, the waterway carried around one-fifth of global energy supplies. Any disruption to shipping through this route could reduce oil availability and increase transportation costs.

Brent crude prices had climbed above $117 per barrel last week, reaching their highest level since April. The recent decline reflects growing hopes for diplomatic progress, but it does not mean that supply risks have disappeared.

Going forward, oil prices will depend heavily on developments involving Iran and Saudi Arabia, as well as shipping conditions in the Strait of Hormuz. Successful negotiations could put further pressure on crude prices, while renewed attacks or shipping disruptions could trigger another rise.

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