Oil Prices Hold High Amid Houthi Attacks and Iran Threats

Oil prices remained near five-month highs on Tuesday, with Brent crude trading around $109 and West Texas Intermediate near $103. Markets are currently balancing a potential increase in Russian supply against escalating instability in the Middle East.

Donald Trump issued an executive order waiving certain sanctions and tariffs on Russian energy exports, though Secretary of State Marco Rubio indicated a final decision remains pending further evaluation. While this move pressured prices downward, gains were sustained by Houthi militants who claimed attacks on Saudi Arabian targets, including the Shaybah oilfield, an Aramco site in Yanbu, and airports in Riyadh and Abha. A separate Houthi strike on a security forces training camp in Yemen's Shabwa province killed 58 people and injured over 200.

Tensions further intensified as Iran's First Vice President Mohammad Reza Aref asserted that Tehran must control the Strait of Hormuz to protect national security, blaming Washington for the friction. U.S. Energy Secretary Chris Wright reported that crude flows through the strait have recovered to approximately 80% of prewar levels, though analysts warn that renewed Iranian aggression could jeopardize this recovery.