Crude Oil Prices Fall as Peace Hopes Ease Middle East Supply Fears | October 29, 2026

Crude oil prices declined on Thursday, October 29, 2026, giving up part of the previous session’s gains as hopes of renewed peace negotiations eased concerns over Middle East supply disruptions, as per news reports. 

Brent crude futures fell 82 cents, or 0.7%, to US$114.50 a barrel by 0132 GMT. US West Texas Intermediate (WTI) crude futures dropped US$1.04, or 1.0%, to US$101.74. On Wednesday, Brent had gained 1.3%, while WTI rose 3%. 

US-Iran Peace Talks Put Oil Prices Under Pressure 

US Vice President JD Vance reportedly sent a letter to Iranian Security Council chief Mohsen Rezaei in an effort to revive peace negotiations, according to the Wall Street Journal. 

Qatari mediators have also presented Iran with a revised draft agreement aimed at ending the war involving the US and Israel. However, a senior Iranian official rejected the proposals as unacceptable, while Iran’s foreign minister said Tehran remained open to diplomacy. 

Houthi Attacks Keep Middle East Supply Risks Alive 

Fears of further conflict continued to support oil prices despite Thursday’s decline. The Saudi-led coalition said it had destroyed a ballistic missile fired by Yemen’s Houthis towards the kingdom’s eastern region early on Thursday. 

Yemeni government forces also reported a Houthi attack on Aden airport on Wednesday. A day earlier, the group claimed to have struck Saudi Arabia’s largest oil refinery, which has a processing capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported strike. 

Concerns also persisted over the possibility of a US attack on Iran following the US mid-term elections scheduled for November 3, 2026. 

Read More: Jio Platforms to Focus on AI, Cloud and Satellite Connectivity Over Next 10 Years: MD Akash Ambani! 

US Crude Inventories Decline 

The US Energy Information Administration reported that energy companies withdrew 1.9 million barrels of crude oil from storage during the week ended October 23, 2026.  

Meanwhile, US gasoline inventories rose by 3.9 million barrels during the same week, providing a contrasting signal from the domestic fuel market. 

Conclusion 

Crude oil prices retreated as renewed diplomatic efforts raised hopes of easing tensions, while Houthi attacks and uncertainty surrounding Iran continued to threaten regional stability. Falling US crude inventories offered another important development for traders tracking global oil supply. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.