Oil prices slipped on Thursday, October 29, paring gains from the previous day, as hopes of a resumption in US-Iran peace negotiations raised expectations of progress towards ending the conflict, although escalating Houthi attacks and concerns over further military action by Washington limited the decline.
Brent crude futures fell 1.09 percent, to $114.06 a barrel at around 9.20 am while US West Texas Intermediate (WTI) crude futures were down 1.30 percent, at $101.44.
US Vice President JD Vance has sought to revive peace negotiations by sending a letter to Iranian Security Council chief Mohsen Rezaei, the Wall Street Journal reported on Wednesday, citing US officials and people familiar with the matter.
"Selling pressure is prevailing amid expectations that peace talks may resume," said Yuki Takashima, an economist at Nomura Securities, as quoted by Reuters.
Concerns over intensified Houthi attacks and fears of potential U.S. military action against Iran following its November 3 mid-term elections have heightened regional instability. On Thursday early morning, the Saudi-led coalition fighting Yemen's Houthis said it destroyed a ballistic missile targeted by the group at Saudi Arabia's eastern region, as hostilities between the opposing factions continue to escalate.