Oil Continues to Rise Amid Middle East Supply Concerns

Oil prices continued to rise on Tuesday for a second straight session, driven by ongoing concerns about disruptions to crude supplies in the Middle East as a result of the U.S.–Iran war.

Brent futures climbed $0.63, or 0.6%, to $105.91 a barrel, while U.S. West Texas Intermediate crude rose $0.72, or 0.8%, to $93.32 a barrel.

Preliminary data from Kpler showed crude oil exports from major Middle Eastern producers rose to 12.8 million barrels per day in September, the highest level since February, driven by increased shipments from Saudi Arabia and the United Arab Emirates.

Analysts say continued use of alternative transportation methods, including ship-to-ship transfers, keeps shipping costs elevated and limits a return of prices to normal levels.

Markets are awaiting the outcome of talks between the United States and Iran aimed at ending the seven-month war, with expectations that upcoming discussions will focus on a revised proposal to halt the fighting.

Developments in the Strait of Hormuz, one of the world's most important oil and gas transit routes, remain a key factor in determining the direction of crude prices in the period ahead.