Oil prices inched higher on Tuesday, as markets began to look past easing tensions in the Middle East and refocused on how quickly supply can recover and whether global demand will hold steady, according to Arab News.
Brent crude rose by 0.5 percent to $72.37 a barrel, while US West Texas Intermediate gained 0.4 percent to $68.85. The modest increase follows a sharp period of volatility, with prices recently settling back to levels seen before the Iran conflict.
Analysts say the market is entering a more cautious phase. While fears of immediate disruption have eased, uncertainty still lingers. “The recovery in supply has reduced the risk premium, but traders remain cautious,” said Tim Waterer, chief market analyst at KCM Trade. He added that attention is now shifting to demand, particularly from China, where early signals could shape the next price movement.
Tensions between the United States and Iran continue to cast a shadow. President Donald Trump warned that Washington would either reach a deal with Tehran or take further action, keeping geopolitical risks alive. Concerns deepened after reports that Iranian forces fired missiles at commercial ships in the Strait of Hormuz, damaging vessels but causing no casualties.
The Strait of Hormuz, a critical route for global oil shipments, remains under close watch. Although tanker traffic has resumed, the recovery is slower than expected. Analysts note that shipping activity is still limited, with operators hesitant to fully return amid ongoing uncertainty.
At the same time, supply is gradually increasing. The United Arab Emirates has boosted production to its highest level in over four years, while OPEC+ countries, including Russia, have agreed to raise output further starting in August. Saudi Arabia has also cut its official selling price for key crude exports to Asia, marking one of the steepest reductions in decades.
These developments suggest that while supply pressures are easing, the oil market remains finely balanced. Future price movements will likely depend not only on geopolitical stability but also on whether rising production meets real demand in the months ahead.
