West Texas Intermediate trades near $102.00 after pulling back from five-month highs

West Texas Intermediate (WTI) oil prices have pared their daily gains, trading around $102.20 per barrel in early European hours on Friday. Crude oil prices pulled back from a five-month high of 104.00, reached during earlier hours, as renewed diplomatic efforts in the Middle East help ease pressure on global energy markets.

Wall Street Journal report disclosed that US Vice President JD Vance reached out to Mohsen Rezaei, Secretary of Iran's Supreme National Security Council, in an effort to restart peace talks. US President Donald Trump confirmed he approved Vance's diplomatic outreach, adding that Iran needs assistance with medical supplies and other essential resources.

However, oil prices could still find upward support as the US considers resuming military strikes against Iran. A senior commander recently briefed President Trump on potential military options, and Trump has repeatedly warned that airstrikes on Tehran could resume following the upcoming midterm elections.

Despite recent diplomatic movements, the US oil benchmark has gained nearly 14% in October as the US-Iran conflict persists and clashes involving Saudi Arabia and Iran-backed Houthi forces intensify. While threats to shipping through the Strait of Hormuz remain high, with tankers continuing to face attacks, regional crude exports have managed to rebound to near prewar levels as producers discreetly transport oil cargoes through the strategically important waterway.

Crude sentiment softens as TD Securities flags drag from deal headlines

According to TD Securities, the crude complex remains under pressure as "persistent headlines of deal talks are weighing on the crude oil market," with ongoing news flow around potential agreements dampening bullish momentum even as underlying fundamentals stay in focus.