Crude oil prices recovered from earlier losses on Tuesday as renewed attacks on Saudi Arabia and continued disruptions to Middle Eastern energy shipments outweighed optimism surrounding diplomatic efforts to ease tensions between the United States and Iran.
Brent crude oil, the international benchmark, rose 0.4% to $116.24 per barrel as of 08:18 a.m, while US West Texas Intermediate (WTI) gained 0.3% to $102.07 per barrel.
Both benchmarks had fallen by approximately 1% earlier in the session as traders assessed the prospects of a diplomatic breakthrough that could reduce the threat of further supply disruptions.
The recovery reflected persistent concerns over the security of oil infrastructure and shipping routes across the Middle East, where the ongoing conflict has disrupted crude exports and heightened uncertainty over global energy supplies.
Saudi Arabia, Turkey and Pakistan held discussions with Iranian officials in Tehran on Monday as part of efforts to prevent further military escalation and establish channels for regional cooperation.
The diplomatic engagement raised expectations that negotiations could help contain the conflict, reducing some of the geopolitical risk premium embedded in international crude prices.
However, renewed attacks by Iran-aligned Houthi forces on Saudi Arabia complicated the outlook and reinforced concerns that the region remains vulnerable to further disruptions.
Oil markets have also remained sensitive to developments around the Strait of Hormuz, a strategic shipping corridor that handled approximately one-fifth of global energy supplies before the conflict escalated in February.
Shipping activity through the waterway has been significantly disrupted, affecting crude movements from major Middle Eastern producers and contributing to tighter supply conditions.
According to ANZ Research, crude exports from the Gulf region have declined for four consecutive weeks, while shipping flows through the Strait of Hormuz have fallen to approximately 60% of normal levels.
Global distillate inventories were also nearly 5% below their five-year average, increasing the market’s sensitivity to additional supply interruptions.
Brent crude recently climbed above $117 per barrel, its highest level since April, following attacks on tankers and renewed concerns over the security of regional oil exports.
For Nigeria, the sustained strength in international crude prices presents opportunities and challenges.
Higher prices could improve crude export earnings, strengthen foreign exchange receipts and support government revenue, provided domestic production and export volumes remain stable.
However, prolonged instability could increase international freight charges, raise petroleum import costs and sustain inflationary pressures across energy-dependent sectors.
The direction of oil prices in the coming sessions will depend largely on whether diplomatic negotiations produce meaningful progress and whether security conditions improve around Saudi energy infrastructure and major Middle Eastern shipping routes.
