Oil prices slightly recovered after easing geopolitical risks in the Middle East triggered losses in the previous session.
The international oil benchmark of Brent crude increased by 0.45% to $71.32 per barrel at 10.49 am local time (0749 GMT), up from the previous session’s close of $71.
The US benchmark West Texas Intermediate also rose by 0.45% to $67.68 per barrel, compared to $67.38 at the prior session’s close.
Over the last month, both benchmarks had increased with concern that any Israeli attack on Iran’s energy infrastructure would lead to a wider regional war in the Middle East, where most of the oil resources are located.
On Oct. 26, Israel announced that it launched an attack on military targets in Iran as retaliation for Iran’s missile attacks on October 1. The Israeli army said the attack was completed ‘successfully’. Iran said that some military points were targeted and their air defense systems successfully resisted the attacks with limited damage.
Oil prices slumped over 6% on Monday as Israel’s retaliatory strikes on Iran avoided oil and nuclear facilities. Easing geopolitical risks dragged down oil prices, triggering a selloff across markets.
However, tension in the Middle East remains elevated. Iranian President Masoud Pezeshkian said that they did not want war, but they would protect their rights and respond appropriately to Israel’s aggression.
The surge in the US dollar ahead of the run-up to the elections has also aided the decline in oil prices. Generally, a strong dollar reduces demand by making oil more expensive for foreign currency users.
Meanwhile, the US plan to buy oil for the Strategic Petroleum Reserve (SPR) provided some support to prices.
On Monday, the US Department of Energy’s Office of Petroleum Reserves announced a new solicitation for up to 3 million barrels of oil for delivery to the SPRs from April 2025 through May 2025.
