According to Bloomberg Markets, oil prices extended their upward momentum as geopolitical tensions in the Middle East weighed on market sentiment. Negotiations between Iran and Oman aimed at reopening the Strait of Hormuz—a critical chokepoint for global energy supplies—remained at an impasse, raising concerns about potential disruptions to one of the world's busiest shipping channels.
Heightening market anxiety, Houthi militants claimed responsibility for an attack on a major Saudi Arabian refinery located near the Red Sea, adding another layer of risk to regional energy infrastructure. The incident underscores the vulnerability of key production and refining facilities to militant activity in one of the world's most strategically important energy corridors.
The confluence of stalled diplomatic efforts and escalating security threats combined to support crude valuations, as traders priced in the risk of reduced supply flowing through the region. Energy markets remain sensitive to developments that could disrupt the steady flow of oil through the Strait of Hormuz, which handles roughly one-third of all seaborne traded petroleum.