Brent crude futures declined on October 29 as expectations of potential US Iran peace talks helped offset concerns over the risk of a broader conflict in the Middle East.

Brent crude futures fell 1.09 percent to 114.06 dollars a barrel at around 9.20 am, while US West Texas Intermediate WTI crude futures declined 1.30 percent to 101.44 dollars a barrel.

The decline in oil prices reflects a shift in market sentiment as investors assessed the possibility that diplomatic efforts between the United States and Iran could help contain the conflict and reduce the risk of further disruptions to crude supplies.

Oil markets have remained highly sensitive to developments in the Middle East, with concerns over the security of production and transportation infrastructure supporting prices at elevated levels. Any escalation involving major oil producing or transit regions could potentially tighten global supply and push crude prices higher.

However, the possibility of renewed diplomatic engagement between the United States and Iran has provided some relief to markets. A reduction in geopolitical tensions could lower the risk premium embedded in crude prices and improve expectations for the availability of global oil supplies.

Despite the latest decline, Brent remains above 110 dollars a barrel, highlighting the continued uncertainty surrounding the global energy market. Market participants are expected to closely monitor developments in US Iran relations, regional military activity and any potential disruption to crude production or transportation.

For India, elevated crude prices remain an important market and economic variable because the country relies heavily on imported oil. Sustained increases in crude prices can raise the import bill and put pressure on inflation, the current account and corporate profitability, particularly across sectors with high fuel and energy costs.