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Peace Talks Won’t Save Oil Buyers From $100-Plus Oil

Middle East nations have renewed their diplomatic efforts, with high-level delegations from Saudi Arabia, Turkey and Pakistan having met with Iranian officials in Tehran on Monday to explore a regional security framework in a bid to de-escalate tensions. Whereas Iranian President Pezeshkian has expressed a willingness to resolve regional differences, Tehran continues to insist that U.S. sanctions…

Middle East nations have resumed peace talks, with delegations from Saudi Arabia, Turkey, and Pakistan meeting Iranian officials in Tehran to discuss a regional security framework. However, a legitimate agreement is expected to only alleviate some of the geopolitical risk premium in oil prices, as prices will remain high until shipping lanes are secure and Gulf supply is reliable again.

Diplomacy may reduce the risk premium, but a lasting fall in prices requires secure tanker traffic and Gulf barrels returning to the market.

Brief written by urgent.news from OilPrice's own syndicated text. Machine-written — may contain errors; check the original before relying on it.

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