Oil held a gain as a widening conflict in the Middle East threatened to hamper a recovery in supply from the region, while there were also doubts over US President Donald Trump’s claims of an “energy ceasefire” between Russia and Ukraine.
West Texas Intermediate traded near $93 a barrel after rising 2.1% in the previous session, while Brent settled near $107 on Monday. A barrage of drone and missile attacks by Iran-backed Houthi militants on Saudi Arabia’s main airport has intensified pressure on Washington to step up its efforts in the conflict in Yemen.
Meanwhile, Ukraine will continue attacks against Russia as Moscow keeps targeting its energy infrastructure, President Volodymyr Zelenskyy said. Trump said there had been were violations of his “energy ceasefire” but urged his Ukrainian counterpart and Russian President Vladimir Putin to come together and end the war.
Brent remains more than 70% higher this year as the US war on Iran roils energy markets. The attacks on Saudi Arabia came shortly after Riyadh-led forces in Yemen launched a campaign to retake Houthi-held territory, while strikes on tankers in the critical Strait of Hormuz have escalated — leading a growing number of vessels to turn away from a port in the United Arab Emirates that has been key in helping Persian Gulf oil exports recover to near prewar levels.
“Its been a dizzying few days of headlines,” said Scott Shelton, an energy specialist at TP IC Group, pointing to issues including Trump’s claims of an “energy ceasefire” as well as the Houthi attacks on Saudi Arabia. “We are off to a messy start this week.”