Oil prices rose on Tuesday as investors monitored further Houthi attacks on Saudi Arabia and continued uncertainty over the timing of talks concerning the Strait of Hormuz.
Benchmark Brent crude futures increased 2.0% to $107.83 per barrel by 04:19 ET, while US West Texas Intermediate futures rose 2.1% to $103.50 per barrel.
Talks between Iran and Gulf states concerning the reopening of the Strait of Hormuz remained on hold after Oman said a planned Monday meeting had been postponed. Oman did not provide a new date for the discussions.
Houthi Forces Carry Out Further Attacks
Iran-aligned Houthi forces in Yemen carried out further strikes against Saudi Arabia on Monday and continued operations around the Red Sea and Bab al-Mandab Strait.
The Houthis attacked several targets in Saudi Arabia following strikes the previous week that took the country’s East-West oil pipeline offline.
Analysts cited in the source estimated that further disruption associated with the developments could affect the equivalent of an additional 4% to 5% of global oil supplies.
“Oil prices remain firmly supported, with that floor unlikely to give way until markets get clearer visibility on Saudi supply after the East–West pipeline shutdown,” ING analysts said.
Strait of Hormuz Flows Remain Restricted
Before the conflict between the US and Iran began in late February, approximately one-fifth of global oil supplies passed through the Strait of Hormuz.
Flows through the strait have since remained at a fraction of their previous levels following restrictions on shipping after the conflict began.
Oman said over the weekend that a planned meeting between Iran and Gulf states regarding the reopening of the strait had been delayed, without specifying when talks would resume.
US and Iran Give Different Accounts of Peace Prospects
US President Donald Trump said on Monday that Iran was seeking a peace agreement, repeating a claim he has made previously.
Iran disputed that account and said talks would not take place until its conditions were met. Tehran also said the US would need to comply with the terms of a June ceasefire agreement that has since lapsed.
The differing positions added to uncertainty over the timing of further diplomatic discussions and the restoration of shipping through the Strait of Hormuz.