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Global crude oil futures dropped nearly $2 on Tuesday as diplomatic progress in Tehran and rebounding Russian refinery throughput spurred selling, though a ballistic missile attack on Saudi Arabia's Ras Tanura refinery checked the retreat.

Crude benchmarks retreated on Tuesday as diplomatic momentum gathered pace in Iran. Brent fell $1.93, or 1.67%, to settle at $113.88 a barrel, while WTI dropped $1.86, or 1.83%, to close at $99.90, holding the transatlantic spread at $13.98. Selling accelerated after Iranian Supreme Leader Ayatollah Mojtaba Khamenei reviewed four-nation security talks held with Saudi Arabia, Turkey, and Pakistan.

Severe regional supply risks prevented a steeper unwind. Yemen's Houthis claimed a ballistic missile attack on Saudi Arabia's 550,000-bpd Ras Tanura complex, the kingdom's largest export refinery. Concurrently, UBS raised its year-end Brent forecast to $110 a barrel, warning that elevated Hormuz shipping hazards and Israel's parliamentary elections sustain heavy geopolitical risk premia across prompt contracts.

Downstream product dynamics also pressured upstream balances. Russian refiners increased crude processing by 25% in late October to meet Washington's bilateral diesel pact, dampening refined-product tightness while curtailing November seaborne crude exports. However, Price Futures Group analysts noted that elevated refining margins and transport bottlenecks continue to delay downstream price relief ahead of weekly US inventory data.