Brent crude prices remained anchored near their highest levels in a month on Tuesday, as the prospect of a Red Sea shipping blockade overshadowed attempts to broker a truce between the United States and Iran.
The resilience in oil markets came even as the US conducted its tenth consecutive night of strikes on Iranian targets, highlighting the limited impact of diplomatic overtures on near-term supply sentiment.
This marks a significant reversal from the previous week, when Brent crude had slid below $71 as US-Iran talks advanced and Hormuz traffic recovered.
The market’s focus has shifted sharply toward Yemen, where Houthi rebels have announced readiness to block Red Sea shipping lanes.
This development introduces a fresh layer of logistical risk to global energy flows, potentially disrupting a critical artery for crude and refined product exports.
Traders are pricing in the possibility that renewed maritime insecurity could tighten supply conditions, regardless of the status of direct US-Iran hostilities.
This marks a significant reversal from the previous week, when Brent crude had slid below $71 as US-Iran talks advanced and Hormuz traffic recovered. The rapid repricing underscores how quickly geopolitical narratives can shift from de-escalation to renewed supply anxiety.