Oil
Oil holds steady as Middle East risks counter profit-taking
Global crude benchmarks remained largely unchanged as traders secured profits amidst ongoing supply concerns in the Middle East and Russia.
Key points
- Brent crude settled below 106 US dollars per barrel following recent gains.
- Attacks and interceptions continued around shipping lanes and infrastructure in Saudi Arabia and the Persian Gulf.
- Saudi Arabia plans to increase export capacity through pipelines bypassing the Strait of Hormuz.
What happened
According to Rigzone, international crude prices held relatively steady following three sessions of increases as market participants paused to secure profits. Brent settled slightly below 106 US dollars a barrel, while West Texas Intermediate recorded a small increase. Trading activity reflected a period of assessment amid persistent geopolitical risks affecting supply routes from the Middle East to Russia.
Why it matters
Geopolitical disruptions have driven crude values up significantly over the course of the year. Recent incidents include intercepted missiles and drones in Saudi Arabia, alongside rising attacks on vessels navigating the Strait of Hormuz. US President Donald Trump recently announced a prospective arrangement regarding Russian diesel supplies and an energy accord between Moscow and Kyiv, though leaders from both nations have not committed to halting attacks on energy infrastructure, leading to market skepticism. Mark Hackett from Nationwide Funds Group noted that market movement is currently constrained by expectations of additional Russian diesel, as reported by Rigzone.
What comes next
In response to transit vulnerabilities, Saudi Arabia is working to enhance export routes that avoid the Strait of Hormuz. Energy Minister Prince Abdulaziz bin Salman announced that Saudi Aramco could increase alternative export capacity by repurposing existing gas pipelines within a matter of weeks. Meanwhile, analysts caution that retaliatory actions following recent civilian casualties could introduce further instability to international energy markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
