Crude Oil Pulls Back From Session Highs Amid Middle East Transit Risks and Diplomatic Hopes

Original summary · What happened

Crude futures retreated on Tuesday from multi-week peaks as investors weighed potential diplomatic engagement between the United States and Iran against mounting regional transport disruptions. West Texas Intermediate crude for November delivery fell 1.8 percent to settle at $101.79 per barrel after touching an intraday high of $110.48, while the December contract slipped to $98.28. Global benchmark Brent crude futures for December settlement dropped 0.7 percent to $108.79 per barrel, reversing earlier gains that touched $111.99.

Energy markets faced heightened volatility as maritime tensions escalated around the Strait of Hormuz, where tracking data from Kpler identified at least 18 commercial vessels subjected to attacks over the past two weeks. Tanker charter rates across the passage have quadrupled since September due to surging crew safety and maritime insurance expenses. Although Iran's Revolutionary Guard Corps reported that two non-compliant vessels caught fire after encountering naval mines, speculative pressure eased somewhat on hopes that major military escalations would remain curtailed ahead of the upcoming American midterm elections.