Oil prices fell about 2% on Monday 26 October 2026, retreating from near six-month highs reached late last week, as reports of diplomatic efforts to ease tensions between the United States and Iran took some heat out of the market. The pullback came even though attacks on Saudi Arabia continued over the weekend, keeping supply risks firmly in focus.

US crude futures were down $2.14, or 2.07%, at $101.13 a barrel by 0232 GMT, while Brent crude futures were down $2.12, or 1.82%, at $114.60 a barrel, according to Reuters. Both benchmarks had settled nearly $3 higher on Friday after Houthi attacks in Saudi Arabia stoked concern about energy supplies. Brent finished last week up 6% and West Texas Intermediate ended 2.3% higher.

Attacks continue as diplomacy is reported

The Houthis said they had attacked a Saudi airport and oil facilities on Saturday, and Saudi Arabia said on Sunday it had intercepted more missiles and drones. The kingdom restarted partial operations at its main airport on Sunday after damage in an earlier round of attacks, even as the militant group vowed to keep targeting the facility.

At the same time, Qatari mediators travelled to Tehran on Sunday to support efforts to reduce regional tensions, according to reports cited by both outlets. Vanda Insights founder Vandana Hari was quoted as saying concerns over renewed military hostilities, which drove much of last week's rally, had eased on Monday morning, but that the reprieve may prove temporary.

What traders watch next

With prices still elevated after last week's surge, traders are watching for any further attacks on energy facilities or shipping routes, which could quickly reverse Monday's fall, and for any concrete sign of de-escalation, which could extend it.