Oil Prices Stay Elevated as Ansarullah Tightens Pressure on Red Sea Shipping

By Staff, Agencies

Global oil prices remained near a one-month high on Tuesday as escalating regional tensions and Yemen's latest measures targeting Red Sea shipping heightened concerns over global energy supplies.

Brent crude, the international benchmark, traded at $88.87 a barrel after easing 0.4 percent, while US West Texas Intermediate held steady at $82.47. Both benchmarks remained close to the gains recorded a day earlier, when Brent climbed above $90 for the first time in more than a month.

The market reaction came despite reports that mediators had proposed a 10-day ceasefire between Washington and Tehran in an effort to revive an interim agreement reached on 17 June following months of conflict. According to Reuters, a senior Iranian official said Tehran had received the proposal as diplomatic efforts continued.

However, hopes for de-escalation were overshadowed by ongoing US airstrikes, which entered a tenth consecutive night. The strikes followed President Donald Trump’s pledge that Iran would “pay” after American soldiers were killed in Jordan. Iran responded with strikes targeting Kuwait, underscoring the expanding regional confrontation.

Meanwhile, Yemen’s Ansarullah movement announced a ban on shipping linked to Saudi Arabia, extending pressure on maritime routes used to transport Gulf oil. The move places additional focus on the East-West pipeline, which allows Saudi crude exports to bypass the strategically vital Strait of Hormuz. Saudi authorities said they would take all necessary measures to protect their vessels.

With both the Red Sea and the Strait of Hormuz facing heightened security risks, concerns have grown over potential disruptions to global oil supplies. The Strait of Hormuz alone carries roughly one-fifth of the world’s oil shipments, leaving energy markets increasingly sensitive to developments in the region.

Analysts said the latest measures by Ansarullah add another layer of uncertainty to an already strained energy market. Tim Waterer, chief market analyst at KCM Trade, told Reuters that the threat of restrictions on Saudi-linked shipping increases the risk of disruptions affecting one of the world's largest oil exporters.

Shipping through the Strait of Hormuz also remained under pressure after the UK Maritime Trade Operations agency reported that a tanker was struck by a projectile northeast of Limah, off the coast of Oman, early Tuesday. The vessel was not identified.

The ongoing confrontation involving the United States, Iran and its regional allies has become one of the most significant drivers of energy markets in recent years. Although oil prices briefly retreated following earlier diplomatic efforts, renewed military operations have once again pushed prices higher, reflecting persistent concerns that the conflict could disrupt key export routes.

Market analysts noted that while reports of possible negotiations have tempered some of the upward momentum in oil prices, uncertainty remains high as the situation continues to evolve.