
Oil prices declined Oct. 26 as renewed diplomatic efforts raised hopes of easing US-Iran tensions, while European natural gas prices climbed as colder weather and disrupted LNG supplies heightened concerns ahead of winter.
Brent crude futures traded around $115/bbl, down about 1.6%, while US West Texas Intermediate (WTI) declined about 2% to $101/bbl in early trading. Both remained near 6-month highs following last week’s rally.
On Oct. 26, senior officials from Saudi Arabia, Pakistan, and Turkey were expected to hold security talks with Iranian leaders in Tehran. This comes amid concerns that the US and Israel might launch fresh strikes against Iran, while attacks by the Houthi movement against Saudi Arabia continue to escalate. Iranian officials have indicated that the discussions will cover regional conflicts—including the situation in Lebanon—as well as efforts to establish a security framework led by Middle Eastern nations.
Nevertheless, the persistent Houthi attacks on Saudi targets, combined with Iranian actions against oil tankers in the Strait of Hormuz, continue to fuel deep concerns regarding the security of oil infrastructure and maritime shipping.
Meantime, low European gas inventories and colder weather heightened concerns over supplies for the winter heating season. EU storage stood at 74.6% of capacity as of Oct. 25, well below historical averages for late October, while disruptions to LNG shipments from Qatar and the UAE constrained supplies available to replenish inventories.
Competition with Asian buyers for available LNG cargoes added to the pressure. Front-month Dutch TTF futures touched €97.50/MWh on Oct. 26, their highest level since December 2022.




















