Oil prices rose for a second straight session amid persistent concerns that the war could disrupt supply
Oil prices climbed for the second straight session on Tuesday as ongoing fears that the conflict involving the US, Israel, and Iran could trigger supply disruptions in the Middle East overshadowed signs of a recovery in crude oil exports from the region.
Brent crude for November delivery rose $1.71 (1.6%) to $106.99 per barrel at 06:26 GMT, while the more actively traded December Brent contract gained $1.68 to reach $99.51 per barrel. Meanwhile, WTI crude also rose $1.40 (1.5%) to $94.
Both benchmarks had ended the previous day with gains of approximately $1 per barrel.
While data indicates rising oil export volumes from the Gulf, a significant portion of this increase still relies on alternative methods such as ship-to-ship transfers. These methods are riskier, less efficient, and more costly than standard operations, factors that fundamentally underpin the high level of crude oil prices.
Data show that crude oil exports from major Middle Eastern producers reached 12.8 million barrels per day in September, the highest level since February, driven by increased shipments from Saudi Arabia and the United Arab Emirates.
Officials from both countries held separate meetings with mediators as part of a renewed effort to end the seven-month-long war.
US-Iran tensions and their impact on energy prices and inflation expectations remain a key risk factor.
Reports indicate that Iranian officials are pessimistic about reaching an agreement before the situation in the Strait of Hormuz escalates further, a sentiment that keeps uncertainty regarding oil supplies high.
Meanwhile, sources familiar with the matter report that the US is considering regulatory measures to allow for the broader sale of diesel fuel in an effort to help lower prices. This proposal emerged after days of deliberation as a leading alternative to a ban on diesel exports.
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