Oil prices dip as regional talks start, but Houthi strikes keep supply fears high

Oil prices slipped modestly as Saudi Arabia, Turkey, Pakistan and Iran launched diplomatic talks to calm regional tensions. The talks aim to lower the risk of conflict that could disrupt oil supplies. At the same time, attacks by Iran‑aligned Houthi rebels in the Red Sea have risen, keeping investors wary of further price falls. These strikes have heightened uncertainty even as the diplomatic effort gains traction. Brent crude futures stayed close to their six‑month highs, supported by the lingering threat of supply disruptions. The Strait of Hormuz, through which about a fifth of the world’s oil passes, is seeing an increase in security concerns, adding to the fragile market mood. Analysts note that while the dip shows some relief, the combination of ongoing talks and Houthi activity means oil prices could remain volatile. Traders will monitor both the progress of the diplomatic engagements and any new incidents in the Hormuz corridor for clues on future price direction. ## Context The Strait of Hormuz is a narrow passage linking the Persian Gulf with the open ocean, making it a choke point for global oil shipments. Any escalation there can quickly affect worldwide fuel prices.