Oil prices edged higher on Tuesday as renewed Houthi attacks on Saudi Arabia offset hopes of diplomatic progress in the Middle East, keeping crude markets volatile amid continued disruption to regional supplies, according to a report by Reuters.

Brent crude futures rose 0.4% to $116.24 a barrel, while US West Texas Intermediate gained 0.3% to $102.07, reversing earlier declines of approximately 1%. Prices remain near six-month highs after Brent surpassed $117 last week following Iranian attacks on tankers around the Strait of Hormuz.

Diplomatic talks between Saudi Arabia, Turkey, Pakistan and Iran on Monday offered some prospect of easing regional tensions, although renewed Houthi attacks on Saudi oil infrastructure underscored the risk of further supply disruptions. October has recorded the highest number of attacks on commercial shipping around the Strait of Hormuz since 2017, with the waterway remaining a critical source of uncertainty for global energy markets.

Supply constraints continue to support elevated prices, with ANZ Research reporting that Gulf crude exports have declined for four consecutive weeks and flows through the Strait of Hormuz are running at approximately 60% of normal levels. Global distillate inventories are also nearly 5% below their five-year average, adding to concerns over supply availability and maintaining volatility across energy markets.