Crude Prices Retreat as Diplomacy Counters Middle East Tensions

By midday, January ICE Brent fell $1.45 to $103.32 per barrel, while December West Texas Intermediate slid 58 cents to $95.87. This downward pressure persists despite ongoing instability in the Strait of Hormuz. The Wall Street Journal reported that U.S. forces struck Qeshm Island on Monday—a move the administration described as a limited operation—just as voters headed to the polls for midterm elections.

Conversely, prices faced downward momentum from reports of back-channel talks. President Donald Trump and Vice President JD Vance recently suggested progress toward a formal agreement, while Iranian President Masoud Pezeshkian noted that the country’s supreme leader authorized the government to pursue a resolution through dialogue. Adding to the volatility, the U.K. Maritime Trade Operations confirmed that two vessels were hit by projectiles off the coasts of Saudi Arabia and Oman on Monday. While crude faltered, refined products bucked the trend; December ULSD climbed 7.98 cents to $4.5014 per gallon, and December RBOB rose 3.01 cents to $2.9302 per gallon.