On Tuesday, oil prices continued to rise for a second consecutive day, with Brent crude futures for November delivery increasing by 1.22% to $106.56 per barrel, while U.S. West Texas Intermediate futures rose over 1% to $93.57 per barrel. The increase is attributed to heightened worries regarding the prolonged conflict in the Middle East, despite ongoing diplomatic efforts to ease tensions.
Iranian Foreign Minister Abbas Araghchi indicated that indirect talks between Iran and the U.S. are taking place through Qatari mediators, which could influence future oil prices depending on the progress made. Mahmoud Mashal, a senior market analyst at VT Markets Dubai, noted that any significant advancements in negotiations could lead to a decrease in crude prices.
However, concerns persist about energy infrastructure and supply routes in the region, particularly due to renewed tensions between Saudi Arabia and the Houthis. The Strait of Hormuz remains a critical focus, as it previously accounted for 20% of the world's oil supply.
Additionally, former President Trump has expressed intentions to resume military actions against Iran, which could further complicate the situation and impact oil markets