Oil eases on Middle East diplomacy hopes, Saudi attacks keep supply worries alive

Saudi Arabia said ​the visit sought to establish open negotiating channels to "prevent the return of military escalation". The four countries agreed to continue talks with a view to strengthening cooperation in peace and security, ​Iranian state media reported.

Hopes of resolution in the conflict erased some fears of ​supply disruption, lowering risks and pressuring oil prices. However, losses were limited as scope for peace looked ‌fragile, ⁠with renewed attacks by Iran-aligned Houthis on key producer Saudi Arabia.

October has been the worst month for attacks on commercial shipping in the Strait of Hormuz and nearby waterways, Washington-based think tank that has tracked maritime security incidents worldwide ​since 2017. The war ​has rippled across ⁠the Middle East, placing the Strait of Hormuz at the center of the turmoil.

The narrow waterway carried around a ​fifth of the world's energy supplies before the conflict erupted in ​February. Last ⁠week, Brent prices surged to more than $117 a barrel, the highest level since April, after a wave of Iranian attacks on tankers around the strait.

Brent prices touched $117 on Monday ⁠as ​well. Elsewhere, Russian refiners are raising diesel production in October ​after the government granted export quotas following the Kremlin's supply agreement with the US, two industry sources ​close to the matter said.