Crude Prices Hold Steady After Recent Gains

Oil prices held steady after three days of gains as traders took profits following a recent rally. Brent traded near $106 a barrel, while West Texas Intermediate fluctuated below $94 after rising more than 6% since Thursday.

Market Pressures

Saudi Arabia intercepted more missiles and drones launched by Yemen's Houthis on Tuesday. A Houthi assault on Riyadh's main airport over the weekend killed at least 16 people, including a US citizen, and wounded about 300. Meanwhile, Iranian attacks on ships crossing the Strait of Hormuz have surged. Crude prices are up more than 70% this year due to supply disruptions in the Middle East. US President Donald Trump recently announced a deal for Russian diesel and an energy ceasefire between Moscow and Kyiv, though neither side has committed to stop attacks. Mark Hackett, chief strategist at Nationwide Funds Group, noted that skepticism surrounds that deal. Additionally, Russia is shipping less crude as operations at its key Black Sea port slowed down amid rising security fears.

Export Changes

Saudi Arabia is seeking ways to ship oil without transiting the Strait of Hormuz. Energy Minister Prince Abdulaziz bin Salman stated that Saudi Aramco could add 1.2 million barrels a day of export capacity within seven to eight weeks by repurposing gas pipelines. Despite attacks, crude flows approached prewar levels recently, and Saudi Arabia restored flows through a critical Red Sea pipeline.

Context

Oil markets react quickly to conflicts and security risks in major energy-producing regions like the Middle East and Russia. Any disruption to key shipping routes or production facilities can cause sudden price swings worldwide.