Oil wavers as Saudi Arabia's defense minister holds de-escalation talks in Tehran
Saudi Arabia's defense minister met Iran's president in Tehran after Qatari mediators visited on Sunday. Oil fell in the morning and was mixed by midday as Houthi attacks on Saudi Arabia continued.
By James Mitchell ·
Why it matters: Diplomacy over Iran pushed oil lower Monday morning, but Houthi attacks on Saudi oil sites keep supply risk in play.
For information only, not investment advice.
Oil prices fell on Monday morning on hopes of easing hostilities between the US and Iran, Reuters reported, as Saudi Arabia's defense minister sat down for talks in Tehran. How far they fell depended on the hour. Euronews reported a steep early drop in Brent, the global benchmark, while CNBC reported prices mixed by 12:05 p.m. ET, with US crude lower and Brent higher.
Saudi Defense Minister Prince Khalid bin Salman met Iranian President Masoud Pezeshkian and National Security Council chief Mohsen Rezaei to try to de-escalate tensions, CNBC reported, with Pakistan's army chief Asim Munir and Turkish intelligence head Ibrahim Kalin also taking part. Qatari mediators traveled to Tehran on Sunday in coordination with the US, Reuters reported, citing an official briefed on the situation. President Donald Trump framed his options in a Fox News interview on Sunday: "do I make a deal with them, or do I finish them off?"
Supply risk hasn't gone anywhere. The Houthis said they struck pumping stations on Saudi Arabia's East-West crude oil pipeline and Riyadh airport over the weekend, and Saudi Arabia said it intercepted more missiles and drones, according to Reuters. PVM Oil Associates analyst John Evans told Reuters that, with those attacks, "any Brent price dips back to the lows of last week will find grateful buyers."
Sources
Tags: energy · markets-moves