Drone footage of a fuel ship moored at the Baniyas oil terminal in Baniyas, Syria, on October 12, 2026.
Karam Almasri | Reuters
Oil prices edged higher on Tuesday, reversing earlier declines on renewed diplomatic efforts to end the U.S.-Iranian war and hopes for a de-escalation of the broader regional conflict in which Iran’s government-backed Houthis have targeted Saudi Arabia.
International benchmark futures brent crude oil Prices for December delivery rose 0.4% to $116.27 a barrel as of 3:54 a.m. ET. us West Texas Intermediate Futures In June, the price rose 0.5% to $102.27 per barrel.
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This follows talks between Saudi, Turkish, Pakistani and Iranian officials in Tehran on Monday as they step up efforts to de-escalate tensions across the Middle East.
Riyadh said the talks were aimed at keeping diplomatic channels open and preventing further escalation of hostilities. According to Iranian state media, the four countries agreed to continue their engagement to promote peace and security in the region.
The diplomatic push comes after US President Donald Trump said in an interview with Fox News on Sunday that he was close to deciding whether to strike a deal with Iran or step up military operations, suggesting additional strikes remained an option.
A representative from Qatar, which has been helping mediate negotiations between the United States and Iran, also visited the Iranian capital on Sunday, Reuters reported.
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The prospect of a diplomatic breakthrough eased fears of further disruption to global energy supplies and downward pressure on oil prices.
However, with Iran-backed Houthi militants continuing to attack Saudi Arabia over the weekend, prospects for a durable solution appear fragile, and oil prices have so far seen a limited decline.
—CNBC’s Justina Lee contributed to this report.
