Middle East Tensions Push Oil Prices Higher

The Saudi East-West pipeline, a vital artery designed to bypass the Strait of Hormuz, remains offline following last week's attack. Traders fear that storage levels at the Yanbu export terminal may deplete before repairs are finalized, tightening global supply chains that are already strained. Meanwhile, the U.S. benchmark WTI Crude rose 1.9% to $103.26, maintaining the momentum established earlier this week.

Diplomatic efforts to stabilize the region appear to be stalling. While Donald Trump signaled a potential opening for negotiations with Tehran, Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, flatly rejected the overture. The stalemate forced the cancellation of a scheduled meeting in Oman between Iran and Persian Gulf states, further diminishing prospects for a regional agreement to secure the Strait of Hormuz.