Oil Prices Set for Second Weekly Decline Amid Ongoing Middle East Tensions
Brent crude fell to $95.87 a barrel and WTI to $88.49 as Saudi output rebounded, while Iranian attacks on tankers in the Strait of Hormuz continued.
Crude oil prices were on track for a second consecutive weekly drop on Tuesday, with Brent crude at $95.87 a barrel and West Texas Intermediate at $88.49. The levels remain well above the lows seen in February before the conflict began, but are far below the October peaks.
The market is weighing mixed signals from the war. While the risk of a major escalation is viewed as moderate, Iranian forces have persisted in targeting tankers in the Strait of Hormuz. The latest reports describe attacks on four vessels that allegedly ignored Iranian crossing instructions.
In Saudi Arabia, the Yemeni Houthis have continued to strike energy infrastructure, including a pumping station on the East-West pipeline and a facility in Yanbu. Saudi crude output rebounded to 10.56 million barrels per day last month, roughly matching pre-war levels, and Aramco’s chief executive said the company intends to increase production further before year-end.
"We don’t need a deal with Iran," President Donald Trump said this week, adding that the United States no longer seeks a diplomatic settlement.
Analysts note that despite the ongoing threats to shipping, the combination of higher Saudi supply and the absence of a clear path to a peace agreement is keeping oil prices from rising further.