Oil slips as Middle East supply risks offset export recovery

Oil prices fell Tuesday as investors weighed recovering Middle East crude exports against ongoing supply disruption risks from the US-Israeli war on Iran. Brent crude dropped 0.51% to $104.74 a barrel, while US West Texas Intermediate fell 0.83% to $91.83. Saudi Arabia resumed loadings from its Red Sea port of Yanbu after restarting the East-West Pipeline, boosting export outlooks. Middle Eastern crude exports hit 12.8 million barrels daily in September, the highest since February, though analysts noted reliance on costly workarounds like ship-to-ship transfers. European diesel futures eased to around $1,370 per metric ton after spiking last week, with the US considering regulatory relief for red-dyed diesel sales instead of an export ban. US and Iranian officials held separate mediator talks, though President Trump denied offering concessions.