Oil Prices Rise Amid Ongoing US-Iran Tensions and Partial Pipeline Restoration
Oil prices rose for a second day due to uncertainty surrounding US-Iran relations and strong demand, outweighing Saudi Arabia's partial restoration of pipeline flows.
Brent crude traded above $107 per barrel after increasing slightly in the previous session. West Texas Intermediate was around $94 per barrel.
Iranian officials have expressed private pessimism about reaching a deal to end hostilities with Washington and reopen the Strait of Hormuz before US midterm elections in November, following President Donald Trump's rejection of a proposal to resume full traffic through the waterway in seven days.
Saudi Arabia has restored approximately half of the flows through its cross-country East-West pipeline after drone strikes halted operations earlier this month. Flows through the link to the Red Sea have reached at least 3.5 million barrels per day, according to people familiar with the matter.
'There's still enormous geopolitical risk, but the market has learned that barrels keep finding a way out,' said Haris Khurshid, chief investment officer at Karobaar Capital LP.