Oil prices fall for 3rd day as supply concerns ease, diplomacy in focus

Oil prices declined for the third consecutive day on Friday as concerns over supply disruptions eased and diplomatic efforts gained traction. Brent Oil Futures for November delivery fell 0.7% to $104.12 per barrel, while West Texas Intermediate (WTI) crude slipped 0.5% to $101.40 per barrel. Despite ongoing tensions between Saudi Arabia and Iran-backed Houthis in Yemen, which has further strained oil supplies, markets were largely focused on potential supply increases.

Saudi Arabia is reportedly seeking to restore about half of its damaged East-West pipeline to Yanbu on the Red Sea coast within days, while also offering additional crude to Asian refiners via ship-to-ship transfers off Oman. Iran's Revolutionary Guards Navy reported a Togo-flagged tanker was struck attempting an "illegal passage" through the Strait of Hormuz, but diplomatic efforts are increasingly influencing market sentiment.

President Trump is reportedly nearing a decision on resuming large-scale military action against Iran, with key leaders from multiple Gulf nations set to meet next week in New York. China has also been actively involved in diplomatic efforts, urging restraint from both nations and calling for the reopening of the Strait of Hormuz.