Brent crude prices remained largely stable on Wednesday, staying above the $100-a-barrel level as uncertainty over the reopening of the Strait of Hormuz continued amid the ongoing US-Iran conflict.
Brent crude was trading 0.58% higher at $103.20 a barrel, while West Texas Intermediate (WTI) crude was down 0.19% at $89.55 a barrel, according to Bloomberg data.
Oil prices had fallen sharply in the previous session after signs emerged that Saudi Arabia’s crude exports from its Red Sea terminals were recovering following an attack on a major pipeline earlier this month.
Saudi Arabia restores crude export operations
Brent futures declined 2.6% on Tuesday to settle at $102.59 a barrel, while US WTI crude futures dropped about 3.5% to close at $89.38 a barrel.
Satellite images indicated a significant recovery in operations at Saudi Arabia’s Yanbu and Muajjiz terminals, according to a Kpler report. The data showed that nine tankers loaded around 12.5 million barrels of crude at Yanbu between Saturday and Monday.
Exports from the terminal had been affected after a drone attack targeted Saudi Arabia’s East-West pipeline, raising concerns about potential disruptions to global oil supplies.
The pipeline has since resumed operations at around 3.5 million barrels per day, according to reports citing people familiar with the matter. Its maximum capacity is estimated at 7 million barrels per day.
Strait of Hormuz remains focus for oil markets
Attention continues to remain on the Strait of Hormuz, a critical route for global energy shipments, as the US and Iran engage in diplomatic efforts to resolve their prolonged conflict.
Iran had proposed reopening the waterway within seven days if certain conditions were accepted by the US. However, President Donald Trump rejected the proposal, keeping uncertainty over the future of shipping through the route.
Despite tensions, oil flows through the Strait of Hormuz have partially recovered. Kpler data showed that average shipments through the waterway reached 13.2 million barrels per day over seven days, around 77% of the 17 million barrels per day recorded before the US-Iran conflict.
The US military continues to protect tankers from Gulf allies while maintaining restrictions on Iranian oil exports, adding to uncertainty in global energy markets.
