Oil Prices Rise Above $107 Amid Middle East Supply Concerns
On Tuesday, oil prices climbed above $107 per barrel as investors remained concerned about ongoing supply risks in the Middle East. The rise was driven by continued Houthi attacks on Saudi Arabia and uncertainty surrounding talks to reopen the Strait of Hormuz. Benchmark Brent crude futures rose 2.0% to $107.83, while US West Texas Intermediate (WTI) futures increased 2.1% to $103.50. Talks between Iran and Gulf states regarding the reopening of the strategic Strait of Hormuz were postponed again by Oman without a new date being provided. Analysts warned that further disruptions could impact up to an additional 4-5% of global oil supplies, with ING analysts noting that market stability depends on clearer visibility into Saudi supply after recent pipeline shutdowns. Meanwhile, the US and Iran offered conflicting accounts regarding peace prospects. President Donald Trump claimed Iran was seeking a deal, while Tehran insisted talks would only proceed once its conditions were met.
Topics: geopolitics Middle East tensions oil prices Strait of Hormuz