Brent oil tops $117 as Saudi defense minister travels to Iran for talks to de-escalate conflict

Crude oil prices were mixed Monday as Saudi Arabia's defense minister travelled to Tehran to meet with senior Iranian officials to discuss simmering tensions between the two countries.

U.S. West Texas Intermediate futures slid 44 cents to $102.83 a barrel by 12:05 p.m. ET, while Brent crude futures declined were up 36 cents to $117.08 a barrel.

The price moves followed a sharp rally on Friday as repeated attacks by Iran-allied Houthi militants on Saudi Arabia have reignited fears of further disruptions to global energy supplies.

Another major disruption would come as global inventory levels have fallen sharply after eight months of conflict. The U.S. Strategic Petroluem Reserve, for example, is at its lowest level since 1982.

Saudi Defense Minister Prince Khalid bin Salman met Monday with Iranian President Masoud Pezeshkian and National Security Council chief Mohsen Rezaei in an effort to de-escalate tensions.

Pakistan's Army Chief of Staff Asim Munir and the head of Turkish intelligence Ibrahim Kalin are also participating in the talks. Pakistan and Turkey are members of a defense pact with Saudi Arabia.

Tensions remained elevated over the weekend as the Houthis said they had targeted Saudi Arabia's main airport in Riyadh and oil facilities on Saturday. Saudi authorities said Sunday that they had intercepted additional missiles and drones.

Meanwhile, Saudi Arabia plans to begin storing crude oil in Singapore from the second half of 2027, according to energy ministers from both countries, in a move aimed at strengthening the resilience of its Asian supply chain.

In the U.S., the Energy Department on Friday authorized the release of up to 400,000 barrels from the Strategic Petroleum Reserve to address a supply disruption at a Louisiana refinery.

Still, the prospect of additional supply from American producers remains uncertain, with companies reluctant to commit to major new investments amid volatile prices and geopolitical risks.

Alfaro added that U.S. producers were adding some drilling rigs, but remained cautious about substantially increasing capital expenditure.

"We're not really seeing major capex additions to bring new rigs on or bring new production online," he said.