Oil prices edge higher as Gulf tensions keep markets on alert

Oil prices edged higher on Tuesday as renewed security concerns in the Middle East supported prices, while strong regional exports and plans by G7 countries to release emergency fuel reserves limited gains.

Brent crude futures increased by 27 cents, or 0.3%, to $100.59 a barrel. US West Texas Intermediate crude also gained 30 cents, or 0.3%, to $89.73 a barrel.

Despite ongoing tensions around the Strait of Hormuz, oil supplies from the Gulf have remained relatively resilient. Shipping data showed that regional crude exports exceeded pre-conflict levels on several days in late September, as producers used alternative routes and adjusted logistics to keep supplies moving.

However, analysts warned that the situation cannot yet be considered normal. Recent attacks on tankers near Hormuz have increased concerns over shipping security, insurance costs and longer transportation routes.

Data showed that Gulf oil shipments excluding Iran recovered to more than 81% of their pre-war levels in September. Saudi Arabia led the recovery despite attacks on its energy infrastructure and growing threats to regional shipping. Iranian exports, meanwhile, fell to zero amid a US blockade.

Supply concerns were also eased after G7 countries agreed to release 100 million barrels of crude and diesel from emergency reserves. The group also pledged not to impose energy export restrictions following pressure from US President Donald Trump.

Market uncertainty remains high because of continued fighting involving Saudi Arabia and Iran-backed Houthi forces in Yemen. US-Iran talks have also remained deadlocked, raising fears of further disruption to oil supplies.

Saudi-backed Yemeni forces launched an advance on Monday to regain control of coastal areas near the Bab el-Mandeb Strait and the city of Mocha. The Houthis later claimed attacks on targets in Saudi Arabia, including an Aramco refinery in Rabigh, although the reports could not be independently verified.