Oil Steadies as Traders Monitor Mideast Flows

Crude oil prices steadied above $98 per barrel on Tuesday, holding recent gains as investors weighed escalating conflicts in the Middle East and Eastern Europe against signs of robust energy flows from the Persian Gulf. US Energy Secretary Chris Wright said Persian Gulf oil shipments had recovered to about 80% of pre-war levels, although refined-product deliveries remained limited. The Trump administration is also authorizing the sale of sanctioned oil tankers to enable them to transport crude legally, with the global “dark fleet” estimated at around 1,600 vessels. Meanwhile, Iran continued to assert control over the Strait of Hormuz, with maritime authorities reporting multiple attacks on commercial ships. Saudi Arabia and Iran-backed Houthi militants in Yemen also traded strikes, while Russia and Ukraine resumed attacks on energy infrastructure.

Crude oil prices rose to near $104 a barrel on Monday, reaching a more than one-month high after surging 10% last week, as renewed tensions in the Middle East heightened concerns over supply disruptions. A senior Iranian security official warned on Sunday that Tehran had prepared a new response plan in the event of renewed US-Israeli attacks, while maritime authorities reported several separate attacks on commercial vessels around the Arabian Peninsula. Meanwhile, Saudi Arabia intercepted several missiles over the Red Sea on Friday, including one headed toward the Yanbu oil export terminal. Iran-allied Houthi militants in Yemen also launched repeated attacks on Saudi Arabia last week. The seven-day moving average of oil flows through the Strait of Hormuz fell to just 8.5 million barrels per day, down from an estimated 20 million barrels per day the previous week.

Crude oil held near $101 a barrel on Monday, close to a four-week high after surging 10% last week, as renewed fighting across the Middle East heightened concerns over supply disruptions. Reports of a Saudi helicopter crash near the Yemen border, Houthi attacks on the key export hub of Yanbu and two tankers being struck in the Persian Gulf have cast doubt on the durability of the recovery in regional oil flows. US Energy Secretary Chris Wright said Gulf shipments had recovered to around 80% of pre-conflict levels, although refined-product exports remained constrained. Meanwhile, President Donald Trump said Washington agreed to a diesel export deal with Russia and waived tariffs and sanctions on its energy shipments to support peace talks over Ukraine. However, US lawmakers introduced legislation to block the purchases.