Oil prices fall to their lowest level in weeks amid peace negotiations regarding the conflicts in Iran and Ukraine

Oil prices fell by approximately 2% on Tuesday, reaching their lowest levels in three weeks amid expectations surrounding peace negotiations for the conflicts in Iran and Ukraine and uncertainty over energy supplies.

Brent crude oil futures fell by $1.63 to $103.14 per barrel, while U.S. West Texas Intermediate crude declined by 67 cents to $95.79 per barrel. Investors are assessing the possibility of diplomatic progress that could ease tensions and allow exports to resume.

The United States and Iran have not yet reached an agreement, although Qatar-mediated negotiations are continuing. At the same time, military risks remain high following new U.S. strikes on Iran's Qeshm Island and amid Aramco's plans to expand a pipeline bypassing the Strait of Hormuz, through which approximately 20% of the world's oil supply passed before the conflict.

On the Ukrainian front, Russia, Ukraine and the United States are due to participate in trilateral negotiations in Abu Dhabi on November 10–11. A potential agreement could increase Russian exports, but attacks on energy infrastructure and tensions in the Black Sea continue. The market is also awaiting U.S. inventory data, which is expected to show an increase of two million barrels.