Oil slipped from five-month highs on Iran mediation talks and Russian diesel flows

Global crude oil futures settled lower after touching multi-month highs on Tuesday as US–Iran mediation talks in Tehran, returning Russian diesel exports, and a push to reopen shuttered US refineries countered Middle East attacks.

Crude erased sharp early rallies after Iranian President Masoud Pezeshkian met Pakistani army chief Asim Munir—a key US–Iran mediator—in Tehran to discuss de-escalation. Brent fell 76 cents, or 0.69%, to $108.79 a barrel after hitting a five-month peak of $111.99. Expiring November WTI shed $1.87, or 1.8%, to $101.79 after touching $110.48, while active December WTI lost 72 cents to $97.82.

Rising fuel supply prospects accelerated the pullback. Kpler and LSEG tracking showed Russian diesel returning to traditional routes following the US sanctions waiver, with two tankers bound for Turkey and Brazil. Meanwhile, US Energy Secretary Chris Wright confirmed Washington is pressing domestic refiners to boost runs and reopen shuttered plants ahead of an expected 800,000-barrel weekly US crude inventory draw.

Persistent war risks nonetheless floored front-month contracts above $100 a barrel. Israeli Prime Minister Benjamin Netanyahu reaffirmed plans to eliminate the Iranian regime following Sunday talks with US President Donald Trump, while Kpler tallied 18 Gulf ship attacks over two weeks. ING noted elevated risk premia remain entrenched after Houthi strikes killed 58 at a Shabwa camp and targeted Saudi sites including Yanbu and Shaybah.