Brent Retreats After Three-Day Rally

Brent crude fell toward $105 per barrel on Tuesday, ending a three-session winning streak as investors weighed the impact of Russian diesel exports against escalating geopolitical tensions. Russia partially lifted its diesel export restrictions on October 10 following an agreement with the US, helping ease supply constraints in global fuel markets. However, US lawmakers argued that President Trump’s agreement with Russian President Vladimir Putin appeared to violate US law prohibiting Russian energy imports until Moscow ends its aggression against Ukraine. Ukrainian President Volodymyr Zelenskyy also vowed to continue strikes against Russia as Moscow persists in targeting Ukraine’s energy infrastructure, breaching the “energy ceasefire” previously announced by Trump. Meanwhile, the Trump administration faces mounting pressure to support Saudi Arabia in its fight against Iran-backed Houthi militants in Yemen following missile and drone attacks on Riyadh’s main airport.

Brent crude held above $106 per barrel on Tuesday after climbing for three consecutive sessions, underpinned by mounting supply concerns as the Middle East conflict escalates and attacks in Ukraine continue. The Trump administration is under growing pressure to assist Saudi Arabia in its fight against Iran-backed Houthi militants in Yemen following a series of missile and drone strikes on Riyadh’s main airport. The attacks killed at least 16 people, including a US citizen, and left around 300 others injured. In Eastern Europe, Ukrainian President Volodymyr Zelenskyy vowed to continue strikes against Russia as Moscow keeps targeting Ukraine’s energy infrastructure, breaching the “energy ceasefire” announced by US President Donald Trump. Meanwhile, Trump’s envoys Jared Kushner and Steve Witkoff reportedly informed Ukrainian officials that permitting controversial Russian diesel exports was part of broader efforts to bring Moscow back to the negotiating table to end the war.

Brent crude rose more than 1% to above $106 a barrel on Monday, the highest in more than two weeks, as renewed attacks in Ukraine and the Middle East heightened supply concerns. Ukrainian President Volodymyr Zelenskyy said Russia had continued striking energy infrastructure, including a gas-production facility, undermining the energy ceasefire previously announced by US President Donald Trump. Zelenskyy added that Ukraine would continue its own attacks against Russian targets. Meanwhile, tensions intensified in Saudi Arabia, where authorities reported further drone and cruise missile attacks following a deadly weekend strike on Riyadh’s airport. The Saudi-led coalition also reported additional attacks linked to Iran-backed Houthi militants in Yemen. Separately, tanker attacks in the Strait of Hormuz raised concerns over shipping security, despite crude exports from the Persian Gulf remaining relatively strong.