Oil Prices Rise Due to Tensions in the Persian Gulf — Reuters

On Tuesday, oil prices rose slightly amid security concerns in the Middle East, which boosted the geopolitical premium in the market. At the same time, stable oil exports from the region and the emergency release of reserves by G7 countries eased concerns about potential supply disruptions.

Brent crude futures rose 27 cents, or 0.3%, to $100.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 30 cents, or 0.3%, to $89.73 per barrel.

Priyanka Sachdeva, head of market analysis at Phillip Nova, noted that shipping data indicates that regional oil exports actually exceeded pre-war levels in Iran for several days in late September.

“Alternative routes and logistical changes have, to some extent, allowed producers to maintain oil supplies despite disruptions in the Strait of Hormuz. However, it is too early to speak of a full normalization of supplies. Attacks on tankers have resumed in the Strait of Hormuz, and the number of such incidents has increased in recent days. This means that, although oil continues to be transported, shipping costs, insurance risks, routing challenges, and security risks remain high,” Sachdeva said.

According to the publication, in September, oil shipments from Persian Gulf countries, excluding Iran, rose to over 81% of pre-war levels. This was due to the resumption of Saudi Arabian exports, despite attacks on the kingdom’s oil infrastructure and an escalation of Iranian attacks on regional shipping, while Iranian exports fell to zero due to the U.S. blockade.

To further alleviate supply concerns, the G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from emergency reserves and pledged not to restrict energy exports following pressure from U.S. President Donald Trump.

At the same time, other market factors, particularly low oil inventories, are causing market participants to doubt that lower prices will be sustainable, noted Vivek Dhar, an analyst at the Commonwealth Bank of Australia.

The cost of shipping from the Persian Gulf to Asia has also reached a record high, indicating tension in the shipping market and adding risks to yet another link in the oil supply chain, which has almost no margin for disruptions, he added.

This was reported by Reuters.

Oil prices fell following the G7’s decision to release 100 million barrels — Channel NewsAsia.

Saudi Aramco cut oil prices for Asia to a 6-year low — The National.

Oil prices are rising due to concerns about shipping in the Strait of Hormuz.