Oil Prices Fall From Six-Month High as Iran Talks Ease Supply Fears

TLDR

• Brent crude fell about 2% to near $114 a barrel on Monday after hitting its highest close since April 29.
• West Texas Intermediate dropped to about $101 a barrel as Qatari mediators traveled to Tehran.
• Houthi attacks on Saudi Arabia continued over the weekend, keeping supply fears alive.
• An analyst says uncertainty adds roughly $20 a barrel to oil prices.
• The U.S. released up to 400,000 barrels from its Strategic Petroleum Reserve after a Louisiana refinery disruption.

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Oil prices fell on Monday as diplomatic efforts eased fears of further supply disruptions. Brent crude futures for December dropped 2% to $114.39 a barrel. West Texas Intermediate futures fell 2.3% to $100.88.

Both benchmarks had climbed nearly $3 on Friday. Brent settled at $116.72, its highest closing level since April 29. It gained about 6% over the week.

WTI settled Friday at $103.27, up 2.3% for the week. The pullback on Monday followed that sharp rally.

Houthi Attacks on Saudi Arabia Continue

Yemen’s Iran-aligned Houthi movement launched attacks that raised concerns about Saudi energy infrastructure. Saudi Arabia is the world’s largest oil exporter.

🇸🇦🇾🇪 The Houthis say they hit Saudi Arabia’s East-West oil pipeline again.

NASA FIRMS data shows a large fire earlier today near the pipeline roughly 90 km west of Riyadh, close to the location identified in the Houthi claim.

Saudi authorities have not confirmed that the… pic.twitter.com/AHTqKbhEvp

— Mario Nawfal (@MarioNawfal) October 26, 2026

The Houthis said they targeted Saudi Arabia’s main airport in Riyadh and oil facilities on Saturday. Saudi authorities said on Sunday they had intercepted more missiles and drones.

The kingdom partly resumed operations at its main airport on Sunday despite earlier damage. The Houthis have threatened further strikes.

The security situation around the Red Sea has also worsened. The Houthis have pushed toward the Bab el-Mandeb Strait, a key chokepoint linking the Red Sea with the Gulf of Aden.

Diplomacy and Supply Concerns

Qatari mediators traveled to Tehran on Sunday to help ease regional tensions, working with Washington. Reuters reported that senior officials from Saudi Arabia, Turkey and Pakistan were set to meet Iranian officials in Tehran on Monday.

President Donald Trump told Fox News it was “getting to be decision time” on whether to make a deal with Tehran or “finish it off.” Iranian Foreign Minister Abbas Araghchi said the United States would not attempt another attack if rationality prevailed.

Michael Alfaro, chief investment officer at Gallo Partners, told CNBC that uncertainty has added about $20 a barrel to oil prices. He said Brent above $120 to $140 could cause more demand destruction. He also called refining capacity “the real challenge,” with possible effects into 2027 and beyond.

Libya’s National Oil Corporation said a pipeline valve linked to the Hamada and Tahara oilfields had been shut, cutting output at both fields. U.S. producers are adding some rigs but are not making major spending increases, Alfaro said.

On Friday, the U.S. Energy Department approved releasing up to 400,000 barrels from the Strategic Petroleum Reserve to address a Louisiana refinery disruption. Saudi Arabia and Singapore also said Saudi Arabia plans to store crude in Singapore from the second half of 2027.