Middle East Diplomatic Standstill Drives Oil Prices Higher
Oil prices rose on Tuesday, buoyed by ongoing tensions in the Middle East despite a diplomatic standstill. Brent crude, the North Sea benchmark for October delivery, climbed to $91.02 a barrel, up 0.17% from the previous day.
The increase follows a period of heightened anxiety over Iran's blockade of the Strait of Hormuz, a critical passage for global hydrocarbon trade. The International Energy Agency (IEA) reports that Gulf oil exports have nearly halved since June, averaging 16.1 million barrels per day compared to 24 million before the conflict.
Carsten Fritsch, an analyst at Commerzbank, notes that 'growing fears' of a swift return to normal flows from the Gulf are driving prices higher. The main issue remains the full reopening of the Strait of Hormuz, with US President Donald Trump stating he would not extend the 60-day truce period between the United States and Iran.
Market jitters have also been fueled by intensifying conflict between Saudi Arabia and the Iran-backed Houthis in Yemen. The rebels claimed to have targeted a Saudi Aramco refinery on Tuesday, using several drones, according to their Saba news agency.