Saudi Oil Flows Boost Crude Prices Amid Ongoing Middle East Tensions

Oil prices settled lower on Tuesday as crude flows from the Middle East improved, despite rising tensions in the region. The Brent crude futures for the November contract closed at $99.25 a barrel, down $1.09 or 1.09%, while the WTI October contract finished at $94.99 a barrel, down $1.19 or 1.24%. The decline was largely due to increasing flows of Saudi crude through the Strait of Hormuz, which had been disrupted by US-Israeli attacks on Iran in February.

US President Donald Trump's comments on Tuesday, stating that a peace deal with Iran would come after the US midterm elections in early November, also weighed on oil prices. However, Phil Flynn, senior analyst at Price Futures Group, noted that Saudi Arabia was 'acting, not waiting' to restart operations and increase exports.

The Iranian government has indicated that it can reopen the Strait of Hormuz within seven days if the US eases military pressure and lifts its blockade on Iranian ports. Hamad Hussain, senior climate and commodities economist at Capital Economics, said this was a sign that diplomacy efforts could be working.