Oil prices fell as traders assessed fresh diplomatic efforts in the Middle East aimed at averting a possible resumption of U.S. military strikes on Iran.
Brent crude slid toward $114 a barrel after rising more than 1% in the previous session, while WTI crude futures fluctuated near $102 a barrel.
Iranian Foreign Minister Araghchi said Tehran continues to keep the door open for diplomacy, and media reports said U.S. Vice President Vance had reached out to Mohsen Rezaei, secretary of Iran's Supreme National Security Council.
Trump said on Wednesday that talks were being conducted through intermediaries, but stressed he was not sure whether they would produce results. "We need to get this done — whether through a deal or another way — and we will see whether the negotiations succeed," he said.
"News like this affects prices," said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. "Any sign of communication between senior officials on both sides could be enough to prompt some investors to take profits and reduce part of the risk premium."
With the conflict continuing, global benchmark Brent has climbed 11% this month, touching its highest level since April.
The surge in oil prices has placed enormous pressure on consumers and created challenges for central banks trying to control inflation. The Federal Reserve chose to keep interest rates unchanged this week, and traders expect the central bank to resume tightening monetary policy in December.
American voters will head to the polls on November 3 for the midterm elections, with signs indicating Republicans could suffer a sharp drop in support.
Trump has frequently signaled that he may resume military action against Iran after the midterm elections, possibly in coordination with Israel.
Media reports citing anonymous diplomats said U.S. officials had previously told several Middle Eastern countries to prepare for possible renewed military action after the U.S. midterm elections. Similar reports earlier this week also pointed to a possible "short and fierce" military operation against Iran.
December Brent crude futures fell 0.9% to $114.32 a barrel. December WTI crude fell 0.6% to $102.12 a barrel.
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