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WAM reported that oil prices advanced past the $106 level on Tuesday, propelled by supply concerns in the Middle East. Brent crude futures gained $1.24, or 1.18 per cent, to $106.93 per barrel by 00:26 GMT after an initial 1 per cent uptick. West Texas Intermediate futures increased $1.29, or 1.24 per cent, to $102.65, building on a 1.3 per cent gain from the prior session.
The gains reflect ongoing worries about potential disruptions to crude shipments. Houthi attacks on Saudi facilities and vessels in the Gulf have constrained flows through critical chokepoints, a pattern documented in recent weeks by industry observers. This has added a geopolitical risk premium to oil valuations, with prices remaining elevated compared to earlier in the year.
A Reuters account from September 10 described a 6 per cent jump in Brent to $107.63 a barrel as tanker attacks deepened supply fears and both benchmarks crossed the $100 threshold. That move represented the steepest daily increase in nearly two months at the time. Markets have since shown continued sensitivity to any new reports of instability in the area.
According to a Wall Street Journal assessment published on September 10, Brent held above $100 amid Gulf supply risks, with tanker costs surging to records for shipments from the Arabian Gulf to the Far East. The report highlighted incidents involving merchant vessels in the northern Persian Gulf and Gulf of Oman. Such developments have forced traders to reassess availability from major producers.
Broader data indicate that oil flows through the Strait of Hormuz remain far below pre-conflict levels, contributing to tighter global balances. A Reuters poll conducted in July projected that Brent would average $85.22 per barrel for 2026, though subsequent events have prompted some analysts to lift their outlooks. The Organisation of the Petroleum Exporting Countries has trimmed its forecast for world oil demand growth in response to the volatile environment.
The US Energy Information Administration has recorded declines in domestic crude inventories due to strong refining activity, further supporting the price recovery. This comes as the market digests the cumulative impact of several months of regional conflict on export capabilities. Participants await further updates on diplomatic initiatives that could influence the trajectory of energy supplies.
