Peace Talks Won’t Save Oil Buyers From $100-Plus Oil

Middle East nations have renewed their diplomatic efforts, with high-level delegations from Saudi Arabia, Turkey and Pakistan having met with Iranian officials in Tehran on Monday to explore a regional security framework in a bid to de-escalate tensions. S. sanctions and the blockade of Iranian ports must be addressed before broader negotiations can get underway.

Standard Chartered expects a legitimate agreement to knock some of the geopolitical risk premium off oil quickly, though prices will stay high until shipping lanes are secure and Gulf supply is reliable again. Even as Saudi and Iranian officials were meeting in Tehran, the Houthis claimed fresh attacks on Saudi Arabia's East-West pipeline pumping stations, although there is not yet verified evidence of new damage to the pipeline, or interruption of flow.