Oil Prices Hold Ground Amid Mideast Tensions

Oil prices have stabilized near their recent highs due to renewed concerns about geopolitical tensions in the Middle East. Brent crude futures remained unchanged at $88.55 per barrel, while West Texas Intermediate (WTI) futures dipped by 14 cents to $82.26 per barrel.

This price resilience is attributed to fading expectations of a lasting US-Iran agreement and the return of risk premiums to oil markets, according to Priyanka Sachdeva, head of market insights at Phillip Nova in Singapore.

Sachdeva noted that oil prices have rebounded almost completely from their lows seen in early August, following attacks on UAE tankers in the Strait of Hormuz and strikes on Saudi Aramco refineries in the Red Sea region.

However, further gains may remain limited unless tensions escalate again, particularly if new incidents cause significant damage to oil tankers or energy infrastructure.