Waiting game: Oil eases as US-Iran diplomacy hopes cool conflict fears
USO•Oil prices eased as hopes for renewed US-Iran diplomacy cooled fears of a wider conflict, but Brent remained around $115 a barrel, roughly $10 above its September average. A breakthrough appears unlikely before the November 3 midterm elections, with Tehran and Washington still far apart.
1. Oil and diplomacy
Oil prices eased on Thursday as hopes for renewed US-Iran diplomacy helped cool fears of a wider Middle East conflict. Brent was around $115 a barrel, roughly $10 above its September average. A letter from Vice President JD Vance to Iranian Security Council chief Mohsen Rezaei reportedly aimed to revive negotiations, while Iran is said to have rejected a Qatari-mediated proposal to end the war.
2. Stalemate persists
President Donald Trump has repeatedly said he is weighing renewed military action against Iran or a negotiated settlement. He could also maintain restrictions on Iranian oil exports. A clear decision is unlikely before the November 3 midterm elections, and any breakthrough appears unlikely as the two sides remain far apart.
3. Energy developments
Shell and TotalEnergies reported sharply higher third-quarter profits and increased share buybacks, while Woodside Energy agreed to supply QatarEnergy with LNG from its Louisiana project under a 20-year deal.
