Brent Cuts Losses as Middle East Tensions Persist

Brent crude trimmed losses to near $104.5 a barrel on Tuesday after plunging more than 7% in the previous session.

Reports indicated that the US and Iran remained far from reaching a deal to end their war, while mediator Qatar stepped up efforts to bridge differences and avert renewed escalation after the US midterm elections.

Overnight, the US reportedly carried out defensive strikes on Iran, targeting surface-to-air missiles used against US assets.

The strikes appeared limited and did not signal a return to major combat operations.

Meanwhile, US President Trump renewed threats of possible military action.

Qatari mediators traveled to Tehran on Monday night to discuss a version of a draft US-Iran deal that had been under consideration.

The secretary of Iran’s National Security Council later said the US response to Iran's demands “was not convincing.” Still, Qatar’s Foreign Ministry spokesperson said both the US and Tehran were reviewing proposals put forward by mediators.