Key Points
- Brent crude rises 0.21 per cent to $109.78 a barrel in Asian trading
- US West Texas Intermediate (WTI) gains 0.15 per cent to $103.82
- Prices ease before rising during early Asian trade on Tuesday
ISLAMABAD: Oil prices rose in Asian trading on Tuesday as renewed geopolitical tensions in the Middle East offset the potential for Russian energy exports after a US waiver of some sanctions and tariffs.
Brent crude futures rose 23 cents, or 0.21 per cent, to $109.78 a barrel, while US West Texas Intermediate crude gained 15 cents, or 0.15 per cent, to $103.82, according to market data.
Oil gains follow decline
The gains followed an earlier decline in Asian trading, when Brent fell 49 cents to $109.06 a barrel, and the more actively traded December WTI contract lost 46 cents to $98.08.
The subsequent recovery reflected the market’s continuing sensitivity to geopolitical developments and the threat of further supply disruptions.
Brent had climbed to $110.70 a barrel in the previous session, its highest level since May 20, as concerns over energy infrastructure and shipping routes in the Middle East supported prices.
Middle East risks sustain oil prices
Yemen’s crisis has added to concerns about the security of energy infrastructure and shipping routes across the region.
Continued disruption could constrain supplies and sustain upward pressure on crude prices, even if restrictions on Russian energy exports are relaxed.
The risks are particularly significant because the Strait of Hormuz is a major route for global oil shipments.
Any deterioration in shipping conditions or damage to regional energy facilities could complicate efforts to restore normal flows and increase transportation costs.
Russian waiver offers potential supply relief
US President Donald Trump issued an executive order on Friday waiving certain Russia-related sanctions and tariffs, including measures affecting Russian energy trade.
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However, Trump said on Saturday that he had to announce a final decision, while Secretary of State Marco Rubio said the administration needed more time to evaluate the implications.
Additional Russian fuel supplies could ease some pressure on international markets.
Russia’s crude oil production rose by 65,000 barrels per day in September to 8.43 million barrels per day, according to the International Energy Agency, but remained about 870,000 barrels per day below its level a year earlier.
The potential for increased exports therefore remains uncertain, while continuing instability in the Middle East limited the market’s response to the prospect of looser restrictions on Russian energy.
In the United States, crude oil inventories and refined petroleum products were expected to decline in the previous week, according to a preliminary poll. The market was awaiting official inventory data for further indications of supply conditions.
Oil prices remain caught between the prospect of additional Russian supplies and the threat of further Middle East disruptions, with developments in both areas likely to determine the market’s next move.
Oil prices have swung sharply since the Iran war began on February 28, 2026, with Brent crude surging above $100 a barrel as disruptions to the Strait of Hormuz threatened global supplies.
Prices subsequently retreated on hopes of diplomatic progress and expectations of additional supplies, before renewed fighting and attacks on energy infrastructure pushed them higher again.
The conflict has kept markets sensitive to developments across the Middle East, where any disruption to oil production or shipping could tighten supplies and increase costs.
By October, Brent had climbed to $110 a barrel, underscoring persistent uncertainty surrounding energy flows, the prospects for a lasting settlement and the potential consequences for global inflation and economic growth.
