Global oil prices extended their upward trajectory for a second consecutive session on Tuesday, driven by lingering anxieties regarding energy infrastructure in the Middle East, even as diplomatic channels appear to be opening between the United States and Iran.
Brent crude futures for November delivery rose 1.22% to settle at $106.56 per barrel. U.S. West Texas Intermediate (WTI) futures similarly advanced, climbing more than 1% to $93.57 per barrel.
According to reports citing Iranian Foreign Minister Abbas Araghchi, indirect negotiations between Tehran and Washington are underway via Qatari mediators in New York. Regional mediators are actively pushing for ceasefire discussions to de-escalate the ongoing conflict.
Mahmoud Mashal, senior market analyst at VT Markets Dubai, noted that while any tangible progress in these talks could exert downward pressure on crude prices, immediate market sentiment remains dominated by supply risks. He highlighted that tensions between Saudi Arabia and Houthi forces continue to cast a shadow over regional energy flows and infrastructure security.
The Strait of Hormuz remains a focal point for global energy markets. Prior to the outbreak of war, the critical waterway facilitated the transit of approximately 20% of the world’s oil supply. Its status continues to be closely monitored by traders and policymakers alike.
Adding to market uncertainty, President Trump rejected a conditional proposal from Tehran on Saturday regarding the reopening of the strait. Trump stated to aides that he anticipates resuming airstrikes against Iran following the midterm elections scheduled for November.
Airstrikes after midterms? That timeline sounds like political theater, not energy policy. Prices will likely stay volatile either way.
It is wild that markets ignore diplomatic progress when Hormuz is at risk. That 20% supply figure is terrifyingly high for stability.