Oil Slips as Iran Conflict Persists

WTI crude futures fell below $95 per barrel on Wednesday, paring gains from the previous session as investors navigated ongoing hostilities in the Middle East and uncertainty surrounding the Strait of Hormuz. Iranian state media confirmed the death of Ali Larijani, secretary of the Supreme National Security Council and a key figure in the country’s wartime leadership. Iran has intensified attacks on regional energy infrastructure this week, including strikes targeting Saudi Arabia’s eastern province. Meanwhile, US allies have rebuffed President Donald Trump’s call for support in safeguarding commercial shipping through the Strait of Hormuz. Trump later dropped efforts to rally partners for the war with Iran and criticized allied nations. Still, Iran has permitted safe passage for some vessels through the narrow waterway depending on their affiliations.

WTI crude oil futures rose more than 2% to $96 per barrel on Tuesday, recovering from a 5.3% drop the day before, as Iran continued attacks on energy infrastructure across the Middle East and Israel reported killing senior Iranian officials. Operations at the Shah gas field in the UAE were suspended, and an Iraqi oil field was also struck by drones and missiles. Loadings from Fujairah were again halted, further straining global supply as the war enters its third week and the near-complete closure of the Strait of Hormuz starts affecting consumers. Oil has surged over 40% since the conflict began, though prices eased on Monday ahead of the first US emergency reserve release. President Trump said Washington is focused on degrading Tehran’s ability to threaten international shipping and urged other nations to help secure the Strait of Hormuz, but several key US allies have rebuffed his call to send warships to escort vessels through the strait.

WTI crude futures rose above $98 per barrel on Tuesday, rebounding from the previous session’s losses as investors continued to assess the impact of the Middle East conflict on global supply. Iran has stepped up attacks on energy infrastructure in the region, while most countries have so far resisted US President Donald Trump’s call for support in safeguarding commercial activity in the Strait of Hormuz. On Monday, the US oil benchmark tumbled more than 5% after several tankers safely navigated Hormuz over the weekend, raising hopes the waterway could soon reopen. India is also negotiating six additional vessels as several countries pursue back-channel talks with Iran to ensure safe passage for their ships. The US is allowing Iran to continue shipping crude through Hormuz, while a direct communications channel between the US and Iran has also reportedly been activated.