Tehran talks vow to continue dialogue as oil retreats and Fed meeting looms

Key Facts

Representatives of Saudi Arabia, Iran, Pakistan and Turkey agreed to continue talks to expand cooperation, particularly on regional peace and security, at a meeting hosted in Tehran on Monday, according to a statement cited by the Associated Press. The statement announced no ceasefire agreement and set no date or venue for a next round. The visit was part of efforts to ease tensions and encourage dialogue and diplomatic solutions, according to Saudi Arabia’s foreign ministry. The ministry said Riyadh hoped the parties would engage positively and pragmatically with the visit’s outcomes and mediation efforts. It stressed the need to open negotiating channels to prevent a return to military escalation.

The Saudi delegation included Defense Minister Prince Khalid bin Salman, while Pakistan’s delegation was led by army chief Asim Munir; Turkish intelligence chief Ibrahim Kalin also took part, according to the Associated Press. Iran’s Supreme National Security Council secretary Mohsen Rezaei hosted the talks. Iranian President Masoud Pezeshkian said his country supported any understanding that deepened regional cooperation and helped resolve disputes. He added that such cooperation could benefit from the Islamic countries’ shared resources and capabilities. Saudi Arabia said the visit was also part of its support for mediation efforts led by Qatar and Pakistan. Coverage linked the meeting to a broader effort to contain the war crisis, without announcing any new understanding on ending it.

The talks come as negotiations over the war have appeared stalled for weeks, according to the Associated Press, despite Tehran saying it remains open to diplomacy. Qatar and Pakistan previously helped broker a temporary agreement in June that sought to restore navigation through the Strait of Hormuz, lift the U.S. naval blockade and begin negotiations on a broader settlement that included Iran’s nuclear program. That earlier track gives the current mediation a context beyond the meeting itself, bringing together the security of the maritime passage and the nuclear file. The participants also discussed the Yemen war and Houthi attacks on Saudi Arabia, the Associated Press reported. These issues underscore the link between Saudi security and efforts to ease regional tensions.

The Associated Press reported that tankers had been targeted or struck naval mines. Against the backdrop of the meeting, The Washington Post reported that U.S. President Donald Trump said he would not launch strikes before the midterm elections on 3 November, but hinted that attacks could resume afterward. The newspaper said the U.S. military had drawn up plans in recent weeks for the possible deployment of thousands of additional naval forces to the Middle East. These reports do not establish the existence of a joint U.S.-Israeli strike plan, nor do they indicate an imminent decision to resume operations.

Cautious optimism about a possible resolution to the war was reflected in oil prices in early Asian trading on Tuesday. Brent futures fell 0.57% to $115.15 a barrel, while West Texas Intermediate declined 0.43% to $101.32, as of 00:00 GMT on 27 October. Reuters said the prospect of a resolution to the war kept supply-shortage concerns in check, while attacks on Saudi Arabia kept Brent near its six-month highs and reduced hopes for an immediate stabilization. The pricing of crude therefore reflected both the diplomatic track and concerns over supply security. The outcome of future talks remains an important factor in tracking developments in tensions, but the four countries announced no date for another round.

Attention in the coming days will turn to U.S. meetings and data that energy markets may monitor. The Federal Reserve will hold its Federal Open Market Committee meeting on 27 and 28 October, with the press conference scheduled for 28 October, according to the central bank’s calendar. The Energy Information Administration lists its usual weekly petroleum status report for Wednesday at 10:30 a.m. Eastern Time. The public calendar does not confirm a specific release time for the report on 28 October. The four countries also set no date or venue for the next talks, leaving the mediation’s progress tied to opening new negotiating channels.