Oil Prices Today, October 29, 2026: Brent Falls To $114.2, WTI At $101.4 As US-Iran Peace Hopes Counter Supply Risks

Mumbai, October 29: Oil prices fell on Thursday, October 29, as hopes of renewed diplomatic engagement between the United States and Iran eased concerns over potential supply disruptions in the Middle East. However, the decline remained limited as escalating regional hostilities and threats to energy infrastructure kept traders wary. Brent crude futures dropped 1% to $114.2 a barrel, while US West Texas Intermediate (WTI) crude declined 1.4% to $101.4. Both benchmarks had advanced in the previous session, with Brent rising 1.3% and WTI gaining 3%, as investors assessed the risks of a wider conflict. 

US-Iran Diplomatic Efforts Weigh On Oil Prices 

Selling pressure emerged amid reports that US Vice President JD Vance had sent a letter to Iranian security official Mohsen Rezaei seeking to revive peace negotiations. The move raised hopes that diplomatic engagement could help contain the conflict and reduce the risk of prolonged disruptions to crude supplies. 

Both contracts fell on US-Iran peace hopes. Source: Oilprice.com   

Qatari mediators have also presented Tehran with a draft proposal aimed at ending the war involving the US and Israel. However, an Iranian official dismissed the proposals as unacceptable ideas that did not constitute a formal offer. Iran’s foreign minister said on Wednesday that Tehran was continuing to give diplomacy a chance, leaving investors to weigh the possibility of negotiations against the risk of further escalation. 

The prospect of renewed talks has offered some relief to oil markets, which have been sensitive to developments across the region. Nevertheless, traders remain cautious about whether diplomatic efforts can produce a breakthrough and prevent further threats to energy infrastructure and shipping routes. 

Houthi Attacks Keep Supply Disruption Risks Alive 

The decline in crude prices was limited by intensifying attacks involving Yemen’s Iran-aligned Houthi movement. Yemeni government forces reported an attack on Aden airport on Wednesday, following warnings from the Houthis for people to evacuate the facility. 

The group had also claimed a missile strike on Saudi Arabia’s largest oil refinery, a facility with a processing capacity of 550,000 barrels per day. Saudi authorities had not immediately confirmed the reported strike. Separately, the Saudi-led coalition fighting the Houthis said it had intercepted a ballistic missile fired towards the kingdom’s eastern region early on Thursday. 

The developments have heightened concerns about the potential for the conflict to spread further across the Middle East, threatening production facilities and transport infrastructure in a region central to global energy supplies. Investors are also monitoring the possibility of renewed US military action against Iran after the November 3 US midterm elections. 

With geopolitical risks still elevated, oil prices remain vulnerable to sharp moves in response to fresh military developments or signs of progress in negotiations. 

US Crude Inventories Fall, Gasoline Stocks Rise 

Supply data from the United States offered a mixed picture. The US Energy Information Administration reported that crude inventories fell by 1.9 million barrels in the week ended October 23, against analysts’ expectations for a marginal increase of 15,000 barrels, according to a Reuters poll. 

The decline in crude stocks provided some support to prices by suggesting tighter domestic inventories. However, gasoline stockpiles rose by 3.9 million barrels, compared with market expectations for a draw of 900,000 barrels. The increase in gasoline inventories pointed to a less supportive picture for fuel demand and helped temper the implications of the crude drawdown. 

Market participants will continue to assess inventory trends alongside geopolitical developments and diplomatic signals to determine whether the recent price rally can be sustained. 

What High Crude Oil Prices Mean For India 

For India, a major crude oil importer, prices above $100 a barrel remain a significant economic headwind despite Thursday’s decline. Expensive oil can increase the country’s import bill, put pressure on the rupee and raise imported inflation, complicating the outlook for monetary policy. 

Higher crude prices can also squeeze margins for sectors that depend heavily on fuel and petroleum-based inputs, including aviation, paints, chemicals and logistics. Oil marketing companies face their own margin considerations, depending on how international prices feed through to domestic retail fuel rates. 

For Indian equity markets, the direction of crude prices will remain a key variable alongside foreign portfolio investment flows, the rupee and corporate earnings. A sustained easing in oil prices on the back of diplomatic progress could improve sentiment, while renewed attacks on energy infrastructure or a breakdown in negotiations could quickly revive concerns about inflation and economic growth. 

Source

• Oilprice.com