Brent crude, WTI gain for second session amid Middle East supply concerns

Oil prices climbed for a second straight session on Tuesday as traders remained concerned about possible disruptions to crude supplies from the Middle East amid the ongoing US-Iran conflict. The rise came despite signs that exports from major producers in the region are recovering.

At 8:28 am IST, Brent crude was trading at $106.86 a barrel, up $1.58, or 1.50 per cent, while US West Texas Intermediate (WTI) crude stood at $93.86, higher by $1.26, or 1.36 per cent.

Middle East exports recover

Data from oil analytics firm Kpler showed crude exports from major Middle Eastern producers rose to 12.8 million barrels per day in September, their highest level since February. The increase was largely driven by higher shipments from Saudi Arabia and the United Arab Emirates.

However, the higher export volumes have not removed concerns about the security of regional supply routes. The Strait of Hormuz remains a major focus for energy markets because disruptions there could affect the movement of crude and other energy supplies.

The latest rise in oil prices followed a gain of nearly $1 a barrel for both benchmarks in the previous session. Brent had settled at $105.28 a barrel on Monday, while WTI closed at $92.60.

US, Iran hold talks through mediators

The latest price moves also came as US and Iranian officials held separate discussions with mediators in a renewed attempt to find a way to end the seven-month conflict.

The talks are expected to centre on an amended version of a seven-day proposal put forward by Iran last week during the United Nations General Assembly. Tehran has linked the reopening of the Strait of Hormuz to progress on its conditions for ending hostilities.

US considers diesel relief measures

Meanwhile, the United States is considering regulatory relief that could allow wider sales of red-dyed diesel as officials look for ways to bring down domestic fuel prices.

The proposal could allow some buyers to avoid the federal fuel tax. It emerged as an alternative to a proposed ban on diesel exports, which has also been under consideration.

The US is currently weighing measures to address elevated diesel prices while the conflict continues to disrupt energy flows and increase shipping costs.