Oil prices dip as hopes rise for Middle East de-escalation

Oil prices edged down slightly on Tuesday as hopes for a settlement in the US-Israel conflict with Iran eased fears of supply disruptions, though Brent crude remained close to its highest level in six months.

Brent crude futures fell by 66 cents, or 0.57 percent, to $115.15 a barrel as of 0000 GMT, while US West Texas Intermediate dropped 44 cents, or 0.43 percent, to $101.32 a barrel.

Expectations of a resolution to the conflict helped alleviate some concerns over supply disruptions, reducing the risk premium and putting downward pressure on oil prices.

Data collected by a Washington-based research center tracking global maritime security incidents since 2017 showed that October was the worst month for attacks on commercial vessels in the Strait of Hormuz and nearby waterways.

The conflict has cast a shadow over the Middle East, placing the Strait of Hormuz at the center of regional instability. Before the outbreak of hostilities in February, about one-fifth of the world’s energy supplies passed through this narrow waterway.