Oil held steady after three sessions of gains as traders booked profits from the recent rally while threats to energy supplies continued to loom from the Middle East to Russia.
Brent oil edged lower to settle below $106 a barrel while West Texas Intermediate posted a marginal gain. The slight divergence bookended an otherwise aimless session, as investors used a lull in high-stakes developments to readjust positioning.
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, threatening the recent recovery in Persian Gulf oil exports. Crude is up more than 70% this year on Middle East supply disruptions, while oil derivatives such as diesel have surged 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 infrastructure.