Oil held steady after three days of gains as traders booked profits from the recent rally amid persistent risks to energy supplies stretch from the Middle East to Russia.
Brent was trading near $106 a barrel while West Texas Intermediate fluctuated to trade below $94 after rising more than 6% since Thursday.
Saudi Arabia intercepted more missiles and drones launched by Yemen’s Houthis on Tuesday, as fighting with the Iran-backed militant group showed few signs of subsiding. Market participants are monitoring whether the violence will imperil shipments from the region’s largest oil exporter.
Meanwhile, Iranian attacks on ships crossing the Strait of Hormuz have surged, potentially threatening the recent recovery in Persian Gulf oil exports. Crude is up more than 70% this year on Middle East supply disruptions, while oil products, such as diesel, have swelled even more.
In an effort to tamp down soaring prices, US President Donald Trump in recent days announced a controversial deal for Russian diesel as well as an energy ceasefire between Moscow and Kyiv. That accord appeared to come as a surprise to the leaders of both countries and Trump acknowledged on Monday that neither side had actually committed to stop attacks on the other’s energy infratructure.