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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. “The prospect for increased Russian diesel is limiting today’s move, but there is skepticism over that deal,” said Mark Hackett, chief strategist at Nationwide Funds Group. Meanwhile, Russia is again shipping less crude as operations at its key Black Sea port slowed amid rising security fears. A Houthi assault on Riyadh’s main airport over the weekend killed at least 16 people, including a US citizen, and wounded about 300. Trump has said he would consider joining Saudi-backed strikes against the Yemen-based group. “For now, the civilian targets have been terrible, but not necessarily damaging to oil exports or a price event. That can change, especially as Saudi Arabia will need to respond and retaliate after the Riyadh airport attacks,” said Karen Young, senior research scholar in the faculty of International and Public Affairs at Columbia University. “We enter a dangerous cycle.” Meanwhile, Saudi Arabia is seeking to bolster its ability to ship oil without having to transit the Strait of Hormuz. Saudi Aramco could add 1.2 million barrels a day of export capacity within seven to eight weeks by repurposing existing gas pipelines, Energy Minister Prince Abdulaziz bin Salman said Monday. The country also plans to expand its total pipeline capacity bypassing Hormuz. Despite persistent attacks in the waterway, crude flows approached prewar levels in recent weeks. Saudi Arabia has also managed to restore flows through a critical pipeline to the Red Sea after the link was targeted by drone attacks. While crude output remains significantly below normal, it rebounded last month from the lowest in more than three decades, the kingdom reported to OPEC. To get Bloomberg’s Energy Daily newsletter in your inbox, click here. With assistance from Weilun Soon, Lorelei Smillie, Nicholas Lua and Kanoko Matsuyama. ©2026 Bloomberg L.P. This article was generated from an automated news agency feed without modifications to text. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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