Brent Crude Breaks Above $106 as Middle East Conflict Continues

World oil prices continued their upward trend on Tuesday, September 29, with Brent crude breaking above $106 per barrel. This marks a two-day increase in prices, despite reported efforts by the US and Iran to reopen communication through mediators.

The market remains concerned about the ongoing conflict in the Middle East, which could disrupt energy supplies. According to VT Markets Dubai senior market analyst Mahmoud Mashal, the development of communication between the two countries may lead to suppressed oil prices if progress is made in negotiations.

However, tensions between Saudi Arabia and the Houthi group remain a concern, with the potential to impact energy infrastructure and oil delivery in the region. The Strait of Hormuz, which was previously used by 20% of the world's oil supplies, continues to be a point of uncertainty after US President Donald Trump rejected Iran's conditional proposal.