Oil Rises as Hopes for Diplomacy Offset Impact of Renewed Houthi Attacks

Oil prices rose slightly on Tuesday as investors awaited the outcome of diplomatic talks in Tehran, while renewed Houthi attacks on Saudi Arabia underscored persistent geopolitical risks, Robert Harvey reported for Reuters.

Oil prices rose as investors weighed diplomatic efforts against renewed Houthi attacks and concerns over crude supply disruptions in the Middle East.

Brent crude futures rose 45 cents, or 0.39%, to $116.26 a barrel by 0918 GMT, while US West Texas Intermediate (WTI) crude gained 40 cents, or 0.39%, to $102.16. Both benchmarks recovered after trading about 1% lower earlier in the session.

Saudi Arabia, Turkey and Pakistan held talks with Iranian officials in Tehran on Monday aimed at easing tensions in the Middle East.

Iranian state media reported that the four countries agreed to continue discussions to strengthen cooperation on peace and security.

“Prices remain elevated amid persistent geopolitical uncertainties,” said Sugandha Sachdeva, founder of New Delhi-based research firm SS WealthStreet.

She added that hopes for a breakthrough in talks between the United States and Iran had contributed to profit-taking earlier in the session.

Despite diplomatic efforts, renewed Houthi attacks and threats to shipping routes continued to fuel concerns about potential disruptions to crude supplies.