Oil prices for Brent crude climbed past $116 per barrel on Tuesday after fresh Houthi strikes targeting Saudi Arabia and questions regarding diplomatic talks with Iran stoked fears of energy supply interruptions in the Middle East region.
Brent crude futures advanced by 45 cents, representing a 0.39% rise, reaching $116.26 per barrel by 0918 GMT. At the same time, US West Texas Intermediate crude added 40 cents, or 0.39%, bringing its price to $102.16 per barrel. Both oil benchmarks bounced back after dropping roughly 1% earlier in the day.
These pricing shifts came on the heels of diplomatic meetings held on Monday in Tehran, which included representatives from Saudi Arabia, Turkiye, Pakistan, and Iran. State media in Iran reported that the four nations decided to pursue further talks to boost regional security and peace, though persistent geopolitical instability continued to weigh on markets.
Earlier in the week, Brent crude surpassed $117 per barrel to hit its peak since April, driven by Iranian strikes against oil tankers close to the Strait of Hormuz. Additional worries regarding commercial shipping lanes and energy facility security were sparked by new Houthi assaults on Saudi territory.
Market anxieties were further aggravated by tight supplies. Analysts at ANZ Research noted that crude exports from the Gulf dropped for the fourth week in a row. Meanwhile, shipping volumes through the Strait of Hormuz hovered near 60% of typical levels, and worldwide distillate stockpiles sat nearly 5% under the five-year average.
Traders continue to track diplomatic talks and the general election in Israel to spot any shifts in regional strategy. Additional conflict or blocked shipping lanes could increase strain on international oil inventories and maintain high crude costs.
