Oil prices declined on Monday as hopes for diplomatic progress toward easing hostilities in the Middle East weighed on markets, although continued attacks on Saudi Arabia and commercial shipping kept prices near six-month highs. Brent crude futures settled down 91 cents, or 0.8%, at $115.81 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell $1.51, or 1.46%, to $101.76 a barrel. Both benchmarks retreated following strong gains on Friday, when Brent rose 6% for the week and WTI gained 2.3%.

Diplomatic efforts to reduce regional tensions provided some relief to oil markets as Qatari mediators traveled to Tehran and officials from Saudi Arabia, Turkey and Pakistan held discussions with Iranian representatives. The countries agreed to continue talks aimed at strengthening regional peace and security. However, concerns about potential supply disruptions remained elevated after Yemen’s Iran-aligned Houthis claimed attacks on Saudi Arabia’s East-West oil pipeline pumping stations and Riyadh airport. The Saudi-led coalition also reported intercepting and destroying three drones targeting Riyadh and southern regions of the kingdom.

Shipping disruptions continued to threaten global energy supplies, with October marking the worst month for attacks on commercial vessels in the Strait of Hormuz and surrounding waterways. An oil spill from a damaged tanker off the United Arab Emirates also widened, prompting additional beach closures, while authorities reported a vessel on fire near Al-Faw, Iraq. Meanwhile, Russia’s refiners were increasing diesel production following the government’s approval of export quotas under its recent supply agreement with the United States. The International Energy Agency (IEA) warned that global energy markets may not return to pre-war conditions in 2027. Adding to concerns about U.S. supply security, Strategic Petroleum Reserve (SPR) inventories fell to 282.6 million barrels last week, their lowest level since October 1982.