Brent crude futures settled lower Tuesday as traders weighed reports of U.S.-Iran diplomacy against ongoing shipping risks in the Strait of Hormuz, with no agreement announced.
The front-month contract closed at $108.79 a barrel, down 76 cents, or 0.69%, after reaching $111.99, Reuters reported. Earlier Tuesday, Reuters had put Brent at $111.05, then a five-month high, in an update covered in EconoTimes' report on the session's earlier rise.
Qatar's Ministry of Foreign Affairs said Oct. 20 that mediation between Washington and Tehran continued through visits and exchanges of messages. The briefing announced no agreement.
The New Arab reported, citing unnamed sources, that a proposal from Qatar and Pakistan had received positive responses from both sides. The outlet's account remains unverified; it said the proposal would give Iran access to interest generated by $6 billion in frozen assets and provide for an unannounced visit to Iranian nuclear sites by the International Atomic Energy Agency (IAEA).
Separately, Bloomberg reported that an unnamed diplomat involved in the negotiations disputed claims that an agreement was close. Pakistan helped mediate an interim agreement in June, Reuters reported, but fighting resumed weeks later.
United Kingdom Maritime Trade Operations (UKMTO) reported that a tanker was struck by an unknown projectile in the Strait of Hormuz on Oct. 13. It said authorities were investigating and did not identify the attacker.
The U.S. Energy Information Administration (EIA) estimated that 20 million barrels of oil a day passed through the strait in 2024, about 20% of global petroleum liquids consumption. The agency linked higher tanker and insurance costs to added transport expenses and higher crude costs for refiners.
The EIA's next weekly U.S. petroleum report is normally released Wednesday, Oct. 21, at 10:30 a.m. EDT (14:30 UTC).
