Brent Closes at $116.14 as Supply Concerns Persist and De-escalation Talks Continue
Key Facts
Brent crude closed at $116.14 a barrel on October 27, compared with $115.81 the previous day, according to EL7 data. The close followed an early-session price decline, when Brent fell 66 cents, or 0.57%, to $115.15 a barrel at 00:00 GMT, according to a Reuters report published on MarketScreener. U.S. crude at the time fell 44 cents, or 0.43%, to $101.32 a barrel. In the closing data, West Texas Intermediate stood at $102.11, compared with $101.76 the previous day. These readings reflect different measurement times during the day, with supply concerns remaining present in the market.
Diplomatic talks in Tehran were one of the main developments in the background to trading. Reuters said Saudi Arabia, Turkey and Pakistan held talks with Iranian officials on Monday, October 26, aimed at easing tensions in the Middle East. Saudi Arabia said the visit sought to open negotiating channels “to prevent a return to military escalation.” The mediation, according to Associated Press coverage, aims to bring Washington and Tehran back to formal talks. Reuters reported that prices remained near their six-month highs amid supply concerns, without establishing that the talks caused a specific price shift.
The safety of navigation in the Strait of Hormuz remains a source of concern for markets. Associated Press quoted Tehran as saying that 7 oil tankers caught fire or were damaged in the strait during the night of October 22, after being struck or hitting sea mines. The agency said it could not independently verify the account. It added that October saw the highest number of reported attacks on commercial shipping since March, according to the United Kingdom Maritime Trade Operations. These incidents keep tanker traffic and the security of maritime routes among the factors being monitored for crude supplies.
Despite the increase in reported attacks, Associated Press said oil tankers continued to carry crude through the strait under U.S. military protection. The agency cited Lloyd’s List Intelligence data showing that attacks on ships totaled 28 in October, the highest since the start of the war. It said active operators in the Gulf “show little sign of withdrawing” despite the attacks. This picture indicates that oil traffic has not stopped entirely, while ships are operating in a more volatile security environment. Protecting navigation remains a key factor in maintaining the flow of shipments through the strait.
Saudi Arabia’s pipelines offer an alternative route for oil exports when passage through Hormuz is disrupted. Amin Nasser, Aramco’s chief executive, told Associated Press that the capacity of the East-West pipeline rose from 2 million barrels to 7 million barrels a day. The pipeline carries crude around the strait, while the volume moving through it has tripled, Nasser said. The increase gives Saudi Arabia greater capacity to use an overland route to direct crude toward other export outlets. But it does not remove the importance of safe navigation through the strait for regional oil flows.
Estimates from the U.S. Energy Information Administration put the change in Hormuz flows in context: crude oil and petroleum liquids transported through the strait averaged 4.9 million barrels a day in the second quarter of 2026, down from 21.6 million in the fourth quarter of 2025, before the conflict began. Ministers from OPEC and non-OPEC countries participating in the Declaration of Cooperation also said energy flow disruptions had pushed shipping and insurance costs to unprecedented levels, exceeding one-third of the commodity’s value. The ministers called for international shipping routes to be protected to ensure uninterrupted energy flows. On October 23, Brent rose 3.1% to settle at $116.72, its highest level since June 2022, according to Associated Press. This recent trajectory places October 27’s moves within a period of sharp price increases and persistent supply concerns.
The negotiating track over the strait extends to an earlier agreement in June, according to Associated Press. The agency said Pakistan and Qatar helped secure an agreement intended to fully reopen the Strait of Hormuz to shipping and end the U.S. blockade of Iranian ports. The Tehran talks on October 26 are part of broader efforts to ease tensions and bring the parties back to negotiations. Shipping traffic, reported attacks and the capacity of alternative pipelines remain central factors in monitoring supplies. The source does not give a specific date for a subsequent round of talks.