Brent drops to $114.80

Oil prices declined on Tuesday.

Traders reacted to renewed diplomatic efforts aimed at ending the war between the United States and Iran. These moves reduced fears that the conflict would worsen further. The regional fighting has already drawn in Tehran-backed Houthis, who have targeted Saudi Arabia.

December delivery contracts for Brent crude fell 0.87 percent to close at $114.80 per barrel. U.S. West Texas Intermediate futures for June dropped 0.86 percent to $100.88. The decline followed Monday’s talks in Tehran involving officials from Saudi Arabia, Turkey, Pakistan, and Iran. Riyadh stated the goal was to keep diplomatic channels open and prevent another surge in hostilities. Iranian state media reported that the four countries agreed to continue working toward regional peace and security.

The diplomatic push coincides with President Donald Trump’s comments to Fox News on Sunday. He said he was nearing a decision on whether to strike a deal with Iran or intensify military operations. That remark suggested further attacks remained a possibility. Reuters reported that Qatari representatives, who have mediated talks between Washington and Tehran, also arrived in the Iranian capital on Sunday.

Investors view a potential breakthrough as a way to protect global energy supplies. That outlook pushed crude prices lower. However, the price drop stayed modest because a lasting fix still looks unlikely. Houthi forces continued attacking Saudi Arabia over the weekend, keeping some risk in the market.