Oil eased as Vance diplomatic push counters fresh Saudi strikes and Hormuz mine blasts

Global crude oil futures settled slightly lower on Thursday after paring $2 intraday drops as a US diplomatic outreach to Tehran offset fresh Houthi attacks on Saudi refineries and maritime mine detonations.

Crude benchmarks retreated modestly on Thursday as traders weighed nascent diplomatic manoeuvres against persistent Middle East supply risks. Brent fell 44 cents, or 0.38%, to settle at $114.88 a barrel after dropping over $2 earlier, while WTI shed 78 cents, or 0.76%, to $102.00, leaving the transatlantic spread at $12.88. Prices absorbed early selling after US Vice President JD Vance sent a letter to Iranian security chief Mohsen Rezaei seeking to revive negotiations.

Severe physical escalation quickly arrested the slide. Yemen's Houthis claimed strikes targeting Saudi Arabia's Ras Tanura and Rabigh refineries, Abqaiq processing facilities, and regional airports, following a Saudi missile interception over the eastern province. Simultaneously, Iran's Revolutionary Guards confirmed three tankers struck sea mines and caught fire south of Hormuz, prompting ExxonMobil and Chevron to cancel executive travel to next week's UAE energy summit.

Underlying war risks remained entrenched as Washington's top Middle East military commander briefed US President Donald Trump on military strike options against Iran ahead of the 3 November midterms. Meanwhile, product relief tempered further upside, with JPMorgan noting Russian refinery runs rebounded 350,000 bpd last week to 4.0 million bpd as drone strikes ceased.