Oil prices edged lower on Tuesday as fresh diplomatic efforts to ease the US-Israeli war on Iran raised hopes of reduced supply disruptions, although continued attacks on Saudi Arabia kept the global benchmark Brent crude near six-month highs.Brent crude futures fell 66 cents, or 0.57%, to $115.15 a barrel, while US West Texas Intermediate (WTI) crude declined 44 cents, or 0.43%, to $101.32 as of 0000 GMT.The decline followed a sharp rally last week, when Brent climbed above $117 a barrel after Iranian attacks on tankers near the Strait of Hormuz heightened concerns over the security of oil shipments. Brent also touched $117 on Monday.Diplomatic efforts offered some relief to markets, with Saudi Arabia, Turkey and Pakistan holding talks with Iranian officials in Tehran on Monday to ease regional tensions. Riyadh said the visit aimed to establish open channels for negotiations to prevent a renewed military escalation. Iranian state media reported that the four countries agreed to continue discussions on peace and security.However, the prospect of a quick resolution remained uncertain as attacks by Iran-aligned Houthi forces on Saudi Arabia continued to threaten regional stability.October has emerged as the worst month for attacks on commercial shipping in the Strait of Hormuz and surrounding waterways, according to data compiled by a Washington-based think tank tracking maritime security incidents.The conflict has placed the strategic waterway at the centre of global energy concerns. Before the war began in February, the Strait of Hormuz carried around a fifth of the world’s energy supplies, making any disruption to shipping a major risk for oil markets.Separately, Russian refiners are increasing diesel production in October after the government granted export quotas following a supply agreement between Moscow and Washington, two industry sources, quoted by Reuters, familiar with the matter said.
