Oil prices swung between gains and losses on Tuesday as traders weighed diplomatic efforts against a fresh wave of attacks in the Middle East. The moves were mixed, depending on the contract and the time of day.

Benchmark Brent crude futures rose 0.5% to $116.38 per barrel in early trading, according to Investing.com, while U.S. West Texas Intermediate futures gained 0.6% to $102.35. Brent is the international benchmark for crude prices, while WTI serves as the U.S. reference contract. Both contracts had declined earlier in the session. Brent spent the day trading near $115 to $116 a barrel, with WTI close to $101 to $102.

Later reports showed a different picture. December Brent futures fell 0.8% to $114.93 a barrel, and December WTI dropped 0.9% to $100.90, according to the Wall Street Journal. Brent had touched six-month highs last week, driven by fears of further attacks on energy sites and commercial shipping.

Four Countries Agree to Continue Talks After Tehran Meeting

Senior officials from Saudi Arabia, Turkey and Pakistan met Iranian leaders in Tehran on Monday. A joint statement said the four countries agreed to continue talks on regional peace and security. Saudi Arabia and Iran restored diplomatic relations under a China-brokered agreement in 2023.

🇸🇦🇮🇷 Saudi Arabia's defense minister flew to Tehran while Houthi drones were hitting his own country… and that tells you what Riyadh thinks of Washington's protection Defense Minister Prince Khalid bin Salman, the crown prince’s younger brother, sat down Monday with Iran's… pic.twitter.com/g4Gfb2Oo9F

— Mario Nawfal (@MarioNawfal) October 27, 2026

Saudi Arabia's Foreign Ministry said the visit by Defense Minister Prince Khalid bin Salman, the crown prince's younger brother, aimed to reduce tensions and support mediation by Qatar and Pakistan. It called for opening channels of negotiation to prevent a return to military escalation.

The talks covered the Houthi attacks on Saudi Arabia, possible U.S.-Iran talks, shipping disruptions in the Strait of Hormuz and the U.S. blockade of Iranian ports. Qatari officials have also been speaking with Tehran.

Oman Reports Outline to Restore Strait of Hormuz Navigation

Oman said its discussions with Iran produced an outline for a temporary arrangement to restore free navigation through the Strait of Hormuz. The waterway between Iran and Oman carries most of the Gulf's seaborne crude exports and is one of the world's most important oil transit routes. Omani Foreign Minister Badr Albusaidi said the plan would require compromises from both Washington and Tehran.

U.S. President Donald Trump has left open the possibility of further military action against Iran. Tehran has said talks with Washington would require an end to the blockade and the lifting of sanctions on Iranian oil exports.

Houthis Claim Strikes on Pipeline and Riyadh Airport

Houthi forces said on Monday they attacked pumping stations on Saudi Arabia's East-West crude pipeline and Riyadh airport. The East-West pipeline carries crude from Saudi Arabia's Gulf coast to Red Sea export terminals, offering an export route that bypasses the Strait of Hormuz, and its pumping stations were also hit in Houthi drone attacks in 2019. Saudi Arabia did not immediately confirm the claims, though it has reported intercepting missiles and drones in recent days.

The Saudi-led coalition said it intercepted a ballistic missile launched by Yemen's Houthi militia toward Riyadh. It also said it destroyed four ballistic missile launchers and five tunnels used to store missiles in Yemen.

Blockade Weighs on Iran's Economy

Analysts at Capital Economics said the U.S. naval blockade, now in place for more than 100 days, is hurting Iran's economy. They noted that the rial has fallen and inflation is close to 90% a year. Iran depends on crude exports for a large share of its government revenue.

International Energy Agency Executive Director Fatih Birol said on Monday that energy markets are unlikely to return to pre-war conditions in 2027. Saudi Aramco, meanwhile, plans to start storing crude oil in Singapore in the second half of 2027.