Oil Prices Climb Amid Ongoing Middle East Tensions

Oil prices are rising again on Tuesday, following a volatile start to the week.

West Texas Intermediate (WTI) crude has climbed around 0.5% to US$93.05 per barrel, while Brent crude has increased by the same margin to US$105.83 per barrel.

These prices are a result of ongoing tensions in the Middle East, with the US and Iran continuing negotiations to bring an end to the seven-month conflict.

Iranian Foreign Minister Abbas Araqchi stated that Tehran is waiting for a formal response from the US regarding its proposal, which includes a halt to fighting, sanctions relief, and the unfreezing of Iranian assets in exchange for reopening the Strait of Hormuz and beginning talks over its nuclear program and uranium stockpile.

The US has been releasing millions of barrels from its Strategic Petroleum Reserve since the war began, pushing stockpiles down to around 285 million barrels - their lowest level in more than 40 years. This tight oil market could lead to further price increases, with Brent crude potentially testing US$110 per barrel again this week if tensions remain high.