Brent crude settled down 0.8% at $115.81 a barrel, while U.S. West Texas Intermediate fell 1.46% to $101.76, as hopes for easing Middle East tensions outweighed concerns about attacks on Saudi Arabia and shipping.
Brent crude futures fell 91 cents to $115.81 a barrel on Monday, and U.S. West Texas Intermediate crude futures dropped $1.51 to $101.76. Both benchmarks retreated after strong gains on Friday, when Brent posted a 6% weekly gain and WTI rose 2.3% for the week.
Hopes for easing regional hostilities weighed on prices, while attacks on Saudi Arabia and maritime shipping kept investors wary. The Saudi-led coalition said it destroyed three drones targeting Riyadh and southern regions; Yemen's Iran-aligned Houthis had said they struck Saudi pumping stations and Riyadh airport over the weekend, with no immediate Saudi confirmation. Qatari mediators travelled to Tehran, and officials from Saudi Arabia, Turkey and Pakistan met Iranian leaders.
October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways, data compiled by the Washington Institute for Near East Policy showed. A vessel was reported on fire near Al-Faw, Iraq, and an oil spill from a strike-damaged tanker off the United Arab Emirates widened. Saudi Aramco plans to begin storing crude in Singapore in the second half of 2027, while U.S. Strategic Petroleum Reserve stocks fell to 282.6 million barrels, their lowest level since October 1982.
