Oil prices rose on Tuesday after retreating earlier in the session, as diplomatic efforts to ease Middle East tensions offered some relief but attacks on Saudi Arabia and commercial tankers kept concerns over regional energy supplies alive.
Brent crude futures gained 0.4% to $116.27 a barrel by 5:20 AM EST, while US West Texas Intermediate crude rose 0.3% to $102.07.
Both benchmarks had fallen around 1% earlier in the session. Brent surged above $117 last week , reaching its highest level since April, amid attacks on tankers near the Strait of Hormuz.
Diplomatic efforts briefly ease oil prices
The earlier decline in crude came after renewed diplomatic efforts raised hopes of containing the conflict. Saudi Arabia, Pakistan and Turkey held talks with Iranian officials in Tehran on Monday, seeking to ease regional tensions.
Iranian state media reported that the four countries agreed to continue dialogue to strengthen cooperation on regional peace and security.
In a joint statement after the meeting, the four countries “agreed to continue the dialogue to strengthen cooperation amongst the four regional countries, including for peace and security in the region”, according to the Iranian state-owned Press TV.
A Qatari delegation had also travelled to Tehran on Sunday as part of efforts to advance diplomacy and reduce tensions between Washington and Tehran.
The diplomatic opening encouraged traders to take some of the risk premium out of oil prices.
However, the talks have yet to produce a broader settlement, leaving the outlook for energy shipments uncertain.
Renewed attacks keep supply risks elevated
The security situation remains fragile, with Iran-aligned Houthi fighters in Yemen claiming on Monday that they had attacked Saudi Arabia’s East-West crude oil pumping stations and Riyadh’s King Khalid International Airport.
Saudi Arabia is yet to confirm the reported attacks on the oil facilities, while its Saudi-led coalition said it had intercepted a missile fired towards Riyadh.
The attacks pose a threat to Saudi Arabia’s alternative oil export routes at a time when shipping through the Strait of Hormuz remains severely disrupted.
Commercial shipping incidents have also intensified.
There have been close to 30 attacks on commercial ships and tankers in and around the Strait of Hormuz in October 2026, making it the worst month for maritime attacks since the conflict began, according to Al Jazeera.
Renewed US-Israeli strikes remain a risk
The possibility of further military action adds another layer of uncertainty.
President Donald Trump said the US would not attack Iran before the November 3 midterm elections, citing ongoing discussions with Tehran.
However, reports indicate that the US and Israel have drawn up plan s for potential renewed joint strikes in the weeks after the election.
Iran has warned that any new attack would trigger a more severe response, raising the risk of additional disruptions to oil production and shipping.
For oil markets, the competing forces of diplomacy and military escalation are likely to keep prices volatile.
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