Brent crude falls to $114.80 as four nations meet in Tehran

Oil markets moved lower on Tuesday as renewed diplomatic activity in the Middle East reduced immediate fears of supply disruption. The price decline followed a meeting in Tehran on Monday involving representatives from Saudi Arabia, Turkey, Pakistan, and Iran.

Futures for Brent crude, the international benchmark, slipped 0.87% to $114.80 per barrel for December delivery. U.S. West Texas Intermediate futures for June delivery fell 0.86% to $100.88 per barrel. The modest drop reflected a mix of relief over the talks and caution regarding the durability of the peace process.

Riyadh stated that the discussions were designed to maintain open lines of communication and prevent further escalation of hostilities. Iranian state media reported that the four countries agreed to continue engaging to advance regional peace and security. Qatar, which has previously mediated between Washington and Tehran, also sent representatives to the Iranian capital on Sunday, according to Reuters.

The diplomatic efforts coincide with statements from U.S. President Donald Trump, who told Fox News on Sunday that he is near a decision on whether to strike a deal with Iran or intensify military operations. Trump indicated that additional attacks remain an option for the administration.

Despite the diplomatic progress, market gains remained limited because the conflict has not fully abated. Iran-backed Houthi militants continued targeting Saudi Arabia over the weekend, suggesting that regional instability persists even as major powers seek a resolution.