Oil faces longest losing run in year on pipeline hopes, US talks

Oil headed for the longest losing streak in more than a year, as Saudi Arabia moved to restart a key pipeline and the US flagged progress in talks with Iran to end a war that’s rocked the Middle East.

Brent fell toward $98 a barrel, dropping for a sixth day in a slump that’s seen it shed more than 9%. That would be longest losing run for the benchmark since August 2025, months before Washington ignited the conflict in a joint attack on Iran with Israel. West Texas Intermediate for November was near $89.

Saudi Arabia is aiming to restore oil exports via its critical East-West pipeline in the coming days, enabling Riyadh to resume a bypass of the contested Strait of Hormuz. The link — which has the capacity to carry 7 million barrels a day — was damaged in attacks earlier this month.

US President Donald Trump said officials had a “very productive” meeting with Iranian envoys, even after he threatened to annihilate the Islamic Republic during a United Nations speech. More meetings are planned, he added.

Oil has still rallied by more than 60% this year as Middle East hostilities disrupted shipments through Hormuz, the world’s most critical energy chokepoint. The surge has boosted inflation, with product prices rallying even more than crude. Amid the fuels crunch, President Trump said he had encouraged his advisers to support a ban on US diesel exports.

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Trump said special envoys Steve Witkoff and Jared Kushner participated in the outreach with Tehran. There were “lengthy talks with the Iranian delegation through the mediators,” Witkoff posted on X. “They successfully completed a round of discussions that we hope will prove constructive and promising.”

Still, market participants cautioned against reading too much into the claims of diplomatic progress by the Trump administration. “When you’re overly optimistic, you want to see good news to the point where you’re ignoring reality,” said John Driscoll, Director at JTD Energy Services Pte.

Iranian Foreign Ministry spokesman Esmail Baghaei said the purpose of the communication with the US, done via Qatar, was to relay demands, according to the Islamic Republic News Agency. Among aims, he listed an end to the fighting; lifting the US blockade; and unfreezing Tehran’s assets.

Multiple efforts to end the war have so far proved fruitless, including an interim deal that was in effect for a short period. Since then, the US has maintained the blockade of the Islamic Republic’s ports, limiting energy export revenues. In retaliation, Iran has kept attacking ships in Hormuz.

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After more than six months of conflict, the two sides remain at odds on a host of key issues, including Hormuz. Tehran has asserted its control over the waterway, while Washington insists its status remains unchanged.

Prices:

Brent for November settlement fell 0.9% at $98.41 a barrel at 1:10 p.m. in Singapore.
WTI for November delivery dropped 1.5% to $89.21 a barrel.

In addition to the stand-off between Iran and the US, there’s been fighting between Tehran-backed Houthi rebels in Yemen and Saudi Arabia. The group has struck energy facilities in the kingdom, while also making gains against local rivals along the Red Sea coast toward the Bab el-Mandeb chokepoint.

Traders also parsed a mixed report on US stockpile moves from the American Petroleum Institute, which showed a 1.8-million-barrel build in nationwide crude holdings, but declines in inventories of gasoline and distillates. Official figures are due later Wednesday.

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