Crude Oil prices on Thursday declined as traders assessed the possibility of renewed diplomatic engagement between the United States and Iran against the risk
of further supply disruptions amid escalating attacks in the Middle East. The decline partially reversed gains recorded in the previous session, when Brent crude rose 1.3% and WTI climbed 3%. Brent crude futures fell 85 cents, or 0.74%, to $114.50 a barrel, while US West Texas Intermediate (WTI) crude futures declined 91 cents, or 0.89%, to $101.90 a barrel. The possibility of further negotiations has offered some relief to oil markets, but the threat of an intensification in regional hostilities continues to weigh on the outlook for supplies. There are concerns including renewed attacks by Yemen's Houthis and the possibility that the US could launch an attack on Iran after its mid-term elections on November 3. The US had told several Gulf Arab countries to prepare for a short but intense military campaign against Iran after the midterm elections, citing people briefed on the conversations, as reported by Wall Street Journal. US President Donald Trump has said the war with Iran would end on his terms, while reiterating that Tehran must be prevented from acquiring nuclear weapons. Speaking at a campaign rally in Texas on Tuesday, Trump said the conflict could end quickly but stressed that any agreement must ensure Iran never obtains a nuclear weapon.
