Oil prices moved lower during Asian trading on Monday, extending losses from the previous week as investors focused on possible diplomatic progress between the United States and Iran.
However, fresh attacks by Yemen’s Iran-backed Houthi movement kept geopolitical risks elevated across the Middle East.
Brent and WTI Crude Extend Losses
As of 20:33 ET, or 00:33 GMT, Brent crude futures for November delivery fell 0.9% to $102.93 per barrel.
West Texas Intermediate crude futures declined 1% to $99.27 per barrel.
Brent had already ended the previous week lower as signs of potential diplomatic progress reduced some of the geopolitical risk premium built into oil prices.
Efforts to restore disrupted Saudi crude supplies also helped ease concerns over an immediate shortage.
Trump Signals Openness to Iran Talks
U.S. President Donald Trump said during a Fox News interview that he would probably be open to meeting Iranian President Masoud Pezeshkian during the United Nations General Assembly in New York this week.
Any progress toward negotiations between Washington and Tehran could ease fears of further escalation.
That, in turn, could reduce the geopolitical premium supporting crude oil prices.
Houthi Attacks Keep Middle East Risks Elevated
Despite hopes for diplomacy, tensions in the region remain high.
Yemen’s Iran-backed Houthis launched missile and drone attacks toward Riyadh on Saturday. Saudi authorities responded by issuing air-raid alerts for the capital.
The attacks came as the group intensified its campaign against Saudi Arabia amid the broader U.S.-Iran conflict.
Saudi Oil Infrastructure Remains Under Pressure
The renewed fighting has increased concerns about possible disruptions to Saudi oil exports.
Saudi Arabia’s East-West pipeline, which transports crude from oil fields in the east of the country to the Red Sea, has remained affected by previous attacks.
Riyadh has been working to find alternative ways of moving crude to international markets.
Any further damage to Saudi energy infrastructure could tighten global oil supplies and increase volatility in crude prices.
Additional Saudi Cargoes Ease Supply Concerns
Reports that Saudi Arabia was offering additional crude shipments to Asian refiners helped calm some fears of an immediate supply shortage.
The barrels were reportedly being transferred through ship-to-ship operations near Oman’s Sohar port.
The availability of additional cargoes provided some reassurance to buyers concerned about disruptions to traditional export routes.
Oil Market Remains Highly Sensitive to Headlines
Oil traders are currently balancing two opposing forces.
On one side, the possibility of U.S.-Iran negotiations could reduce geopolitical tensions and weigh on crude prices.
On the other, continued Houthi attacks and risks to Saudi energy infrastructure could threaten supply and push prices higher.
As a result, oil prices are likely to remain highly sensitive to developments on both the diplomatic and military fronts.
