Brent Crude Holds Steady Amid Middle East Tensions and OPEC+ Decision
Brent crude oil prices remained stable above $102 per barrel on Monday, as traders assessed the risks of escalating tensions in the Middle East. Saudi-backed forces in Yemen launched a large-scale military operation to reclaim areas controlled by the Houthis, following weeks of rising conflict between the Iran-backed group and Saudi Arabia.
The Houthis have taken control of the Bab el-Mandeb, a critical shipping lane connecting the Red Sea and the Gulf of Aden. Saudi Arabia had been using this route to export oil, avoiding the Strait of Hormuz. Meanwhile, major OPEC+ members decided over the weekend to keep production quotas unchanged for next month, despite ongoing supply disruptions caused by the Middle East conflict.
Oil prices have been climbing back toward $100 per barrel, while diesel prices have hit record highs at the pump. In response, G7 nations have released emergency oil reserves to ease the impact of the continuing conflict.