Oil Prices Rise with Brent Futures Above $110 a Barrel as Middle East Risks Persist — Update

By Farhan Rafid

Oil prices were up on Tuesday as traders weighed persistent Middle East supply risks against signs of recovering Gulf crude exports and prospects of additional Russian energy supplies.

December Brent crude futures rose 0.9% to $110.48 a barrel, while December West Texas Intermediate futures gained 0.9% to $99.39 a barrel.

A U.S.-Iran agreement before the U.S. midterm elections in two weeks appears increasingly difficult, analysts at Deutsche Bank said. Investors are also concerned that Washington could escalate tensions with Tehran after the elections, as increased Iranian attacks in the Strait of Hormuz have slowed the recovery in oil flows, they said.

The gains followed Monday's declines, when Brent settled slightly lower as investors assessed President Trump's decision to waive newly imposed sanctions on Russia.

Despite relatively strong crude flows from the Persian Gulf, oil prices remain supported by a significant geopolitical risk premium, analysts at ING said Tuesday. The premium could gradually ease if shipments continue without further disruptions, but there are no signs of that happening yet, they said.

Record tanker freight rates are also adding to transportation costs, according to ING. Allowing sanctioned tankers into the regular shipping market could help lower freight rates, although the amount of additional capacity and how quickly it could become available remain uncertain, the bank said.

Risks to Middle East supplies also persist. Iran has been providing Yemen's Houthi militia with intelligence and targeting assistance for attacks on Saudi Arabia, The Wall Street Journal reported. U.K. Maritime Trade Operations separately reported an attack on a tugboat near the United Arab Emirates Sunday, following attacks on two tankers off Saudi Arabia Friday.

Efforts to support oil flows through the Strait of Hormuz may fall short of stabilizing fuel markets as supply risks in the Middle East increase, analysts at ANZ Research said.

Write to Farhan Rafid at farhan.rafid@wsj.com

(END) Dow Jones Newswires

October 20, 2026 04:58 ET (08:58 GMT)