Brent crude eases as Tehran talks test Mideast truce prospects

Brent crude futures for December delivery fell 0.87% to $114.80 a barrel on Tuesday. U.S. West Texas Intermediate futures for June declined 0.86% to $100.88 per barrel. The moves followed news of diplomatic contacts aimed at easing a wider regional conflict that has affected oil supply routes.

Officials from Saudi Arabia, Turkey, Pakistan and Iran met in Tehran on Monday. Riyadh said the meeting aimed to keep diplomatic channels open and prevent another escalation. Iranian state media reported that the four countries agreed to continue engaging on regional peace and security.

The meeting in Tehran came as President Donald Trump told Fox News on Sunday that he was nearing a decision on whether to reach a deal with Iran or increase military operations. He said additional attacks remained an option. Representatives from Qatar, which has helped mediate talks between Washington and Tehran, also traveled to Tehran on Sunday, Reuters reported.

Hopes of a diplomatic outcome have eased some concern about energy supply disruptions, which pushed prices lower. Losses stayed limited, however. Houthi militants, backed by Iran, continued attacking Saudi Arabia through the weekend, and no agreement was announced at the Tehran meeting.