Crude oil prices were set to end the week lower for the second time in a row, despite recent tensions in the Middle East. At the time of writing, Brent crude was trading at $95.87 per barrel, while West Texas Intermediate (WTI) stood at $88.49 per barrel. These levels mark a retreat from the highs seen in mid-October, though they remain well above the prices from February, before the war began.
The conflict's outlook remains uncertain. While the risk of severe escalation appears limited, Iranian attacks on tankers in the Strait of Hormuz persist. U.S. President Donald Trump dismissed the possibility of a peace deal with Iran, stating, “We don’t need a deal with Iran” and claiming, “We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait!” Iran, however, shows no signs of backing down from its demands for a deal.
Meanwhile, Saudi Arabia reported that its crude oil production has recovered to 10.56 million barrels per day, matching pre-war levels. Aramco’s CEO announced plans to further increase production before the year’s end. Despite this, Yemen’s Houthi rebels continue targeting Saudi energy infrastructure, including a pumping station and a facility in Yanbu.
The latest reports from Iran indicate that four tankers were attacked in the Strait of Hormuz after failing to comply with Iranian instructions for passage. These ongoing disruptions highlight the fragile state of regional stability and its impact on global oil markets.