Oil prices swung sharply on Tuesday 27 October 2026, as traders weighed two opposing forces: hopes that talks in Tehran might contain the Middle East conflict, and fresh evidence that the risks to supply have not gone away. Brent crude, the global benchmark, first fell about 1% in early trading before turning higher during the European morning, while United States crude followed a similar pattern.

Reports during the session put Brent at around $116 a barrel and US West Texas Intermediate at just above $102 a barrel by mid-morning London time. Those were intraday reported levels, not settled closes, and they left both benchmarks close to the six-month highs reached last week after attacks on tankers around the Strait of Hormuz.

Tehran talks raise hopes of containment

Officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran on Monday, with the aim of easing regional tension. Iranian state media said the four countries agreed to continue talks on peace and security cooperation. Market analysts cited in Reuters reporting said some early profit-taking was driven by hopes of a breakthrough in possible talks between the United States and Iran, even though no agreement had been announced.

Houthi attacks and Hormuz flows keep risk premium high

The scope for calm looked fragile. Renewed attacks by Yemen's Iran-aligned Houthis on Saudi Arabia were reported on Tuesday, underlining why traders remain reluctant to price out geopolitical risk. Research cited in the same reporting said Gulf crude exports had fallen for a fourth straight week, flows through the Strait of Hormuz were only about 60% of their normal level, and global distillate inventories were nearly 5% below their five-year average. October was also described as the worst month for attacks on commercial shipping in the Strait and nearby waters in data tracked since 2017. Sources: Reuters via Euronext and AngelOne.