Oil Prices Fall for Third Day as Supply Concerns Ease and Diplomacy in Focus

Oil prices fell for a third consecutive session on Friday, as traders weighed the potential for restoring disrupted Middle Eastern supplies against ongoing regional conflicts. The decline suggests that for now, market focus is shifting toward signs of supply normalization and diplomatic initiatives to de-escalate tensions.

Market Snapshot

As of 22:31 ET (02:31 GMT), key crude benchmarks were trading lower, though they remained above the psychologically important $100 per barrel level.

• Brent crude futures for November delivery fell 0.7% to $104.12 per barrel.
• West Texas Intermediate (WTI) crude futures declined 0.5% to $101.40 per barrel.

These prices reflect a pullback from recent highs, which were driven by the initial escalation of conflict between the U.S. and Iran and related supply disruptions.

Supply Outlook Eases

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The primary driver for the price drop appears to be expectations that Saudi Arabia can mitigate recent supply interruptions. According to media reports, Riyadh is working to restore about half the capacity of its East-West pipeline, which was damaged in drone attacks last week.

Furthermore, Saudi Arabia has reportedly been offering additional crude cargoes to Asian refiners through ship-to-ship transfers near Oman's Sohar port. This provides an alternative export route, easing some market anxiety over lost volumes through the Strait of Hormuz.

Geopolitical Risks Remain

Despite the easing supply fears, the geopolitical situation remains volatile. Fresh fighting was reported between Saudi Arabia and Iran-backed Houthi forces in Yemen. Separately, Iranian state media said the country's Revolutionary Guards Navy reported that a Togo-flagged tanker was struck while in the Strait of Hormuz.

Markets are also closely watching diplomatic developments. U.S. President Donald Trump is scheduled to meet with leaders from several Gulf nations next week at the United Nations General Assembly, Axios reported. Meanwhile, China's Foreign Minister has called on Washington and Tehran to exercise restraint, signaling broader international efforts to de-escalate the conflict.