New Delhi, Crude oil prices fell by up to 1 per cent on Tuesday, extending losses for the second straight session after high-level diplomatic talks in Tehran raised hopes of de-escalation in the Middle East and tempered immediate supply disruption fears.

Despite the marginal pullback, global crude benchmarks remained near six-month highs due to persistent security risks and ongoing regional conflict.

Brent crude futures—the international oil benchmark—declined by 1.17 per cent, or $1.36, to trade at $114.45 per barrel. Similarly, US West Texas Intermediate (WTI) crude dropped over 1 per cent, or $1.16, to $100.60 per barrel.

The price dip followed a diplomatic meeting in Tehran on Monday, where representatives from Saudi Arabia, Turkey, and Pakistan met with Iranian officials to defuse regional tensions. Statements from Saudi officials confirmed that the talks aimed to establish open negotiating channels to prevent further military escalation, with all four nations agreeing to continue security dialogue.

However, the downside in prices remained limited after Iran-aligned Houthi forces launched fresh strikes on key energy producer Saudi Arabia, highlighting ongoing risks to energy infrastructure.

Market analysts noted that while the partial recovery of Middle Eastern crude exports has relieved immediate availability concerns, geopolitical volatility continues to keep prices elevated. On the Multi Commodity Exchange of India (MCX), immediate technical support for crude is placed in the ₹9,300 to ₹9,060 range, which remains crucial for sustaining price momentum.

Energy markets also remain on edge following recent attacks on oil tankers near the vital Strait of Hormuz, which pushed Brent crude past $117 a barrel last week. The strategic maritime bottleneck handled roughly 20 per cent of global energy shipments prior to the escalation of hostilities.