Crude oil prices remained around the $100-per-barrel level on Tuesday as markets continued to assess developments in the Middle East. Brent crude rose around 0.3% to $100.59 a barrel, while US West Texas Intermediate crude gained 0.3% to $89.73.
Although crude exports from several Gulf producers have recovered through alternative routes, security risks around the Strait of Hormuz and the Bab el-Mandeb region continue to keep a geopolitical premium in energy prices. Shipping costs from the Gulf to Asia have also risen, reflecting continued risks to the movement of commodities.
The conflict involving Iran and regional forces has therefore remained an important factor for global markets. The G7 has also agreed to release 100 million barrels from emergency reserves, which could provide some relief to supply concerns, although the situation remains fluid.
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