Oil climbs for second day as Middle East war keeps supply fears alive
BENGALURU: Oil prices rose for a second straight session on Tuesday as traders weighed the risk of further supply disruptions in the Middle East against early signs that crude exports from the region are recovering. The ongoing US‑Israeli war on Iran, now in its seventh month, continues to cast a shadow over global energy markets, according to Arab News.
November Brent crude futures gained $1.71, or 1.6 percent, to $106.99 a barrel, while the more actively traded December contract rose $1.68 to $99.51. US West Texas Intermediate crude climbed $1.40, or 1.5 percent, to $94 a barrel. Both benchmarks had closed nearly $1 higher a day earlier.
“A clearer picture is emerging of higher oil export volumes leaving the Gulf, but much of that increase still relies on workarounds such as ship‑to‑ship transfers,” said KCM Trade chief analyst Tim Waterer. “Those methods are less efficient and more costly than normal operations, which is why crude prices remain elevated.”
Preliminary data from Kpler showed crude exports from major Middle Eastern producers reached 12.8 million barrels a day in September, the highest since February, supported by larger shipments from Saudi Arabia and the UAE. Even so, market participants remain focused on the broader geopolitical risk.
US and Iranian officials have separately held talks with mediators in a renewed push to end the war, with further discussions expected to centre on an amended seven‑day proposal Iran floated last week at the UN General Assembly. Yet optimism is thin. “The dominant risk remains the US‑Iran standoff and its implications for energy prices and inflation expectations,” UOB analysts wrote in a client note. Iranian officials have reportedly expressed doubt that a deal can be reached before tensions around the Strait of Hormuz escalate further.
The conflict, which began in late February with US and Israeli strikes on Iran, has kept attention fixed on the Strait of Hormuz, a vital shipping lane whose disruption would send shockwaves through energy markets. Meanwhile, the US is exploring regulatory relief to allow wider sales of red‑dyed diesel, a move that could help lower prices by letting some buyers avoid federal fuel tax, people familiar with the talks told Reuters.
