U.S. tells Gulf states to prepare for possible Iran campaign after midterms

Oil prices fell Thursday as traders assessed fresh U.S. efforts to revive peace negotiations with Iran against persistent Middle East supply risks and the possibility of renewed military escalation. December Brent crude futures fell 1.1% to $114.02 a barrel, while December West Texas Intermediate futures dropped 1.4% to $101.37 a barrel, according to The Wall Street Journal.

Vice President JD Vance sent a letter to Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, in an effort to revive peace negotiations, The Wall Street Journal reported, citing U.S. officials and people familiar with the matter. President Trump said Wednesday that he approved Vance’s attempt to make contact. The discussions have focused on a possible framework for negotiations rather than a detailed peace proposal, the Journal reported.

In a separate development, the U.S. has told several Gulf Arab countries to prepare for a possible short, intense military campaign against Iran after next week’s U.S. midterm elections, the Journal reported. Trump hasn’t made a final decision on renewed strikes.

Regional security threats persisted alongside the diplomatic moves. The Saudi-led military coalition said early Thursday that its air defenses intercepted and destroyed another ballistic missile launched by Yemen’s Houthi militants toward Saudi Arabia’s Eastern Province, according to the Saudi Press Agency.

The interception followed the Houthis’ claim earlier this week that they struck Saudi Arabia’s Ras Tanura refinery with a ballistic missile. Saudi authorities haven’t confirmed the claimed strike or any damage to the facility.

On the supply side, U.S. commercial crude inventories fell by 1.9 million barrels to 410.6 million barrels in the week ended Oct. 23, according to data released Wednesday by the Energy Information Administration. Gasoline stockpiles rose by 3.9 million barrels, while distillate inventories declined by 1.5 million barrels, the agency said.

Seven OPEC+ producers are scheduled to meet Sunday to review market conditions and production policy.