Written by: Suhaib Shams
Global oil prices retreated from their five-month high, despite continued military escalation in the Middle East, as crude supplies remained near pre-war levels. The international benchmark Brent crude traded below $109 per barrel, retreating after strong previous gains, while West Texas Intermediate crude stabilized around $101 per barrel, recording notable annual increases supported by ongoing concerns related to geopolitical conflicts.
Impact of attacks on energy infrastructure
The region witnessed sporadic incidents targeting energy facilities and maritime shipments, including attacks on the vital Yanbu oil port and incidents involving tankers in the Arabian Gulf, in addition to aviation incidents near the borders. Despite these rising security risks, oil shipment flows continued at relatively stable levels, as huge numbers of crude barrels passed through the Strait of Hormuz within one week, supported by security measures and military escorts, which prevented a complete supply interruption and contributed to temporarily easing upward pressure on prices.
Energy market outlook and geopolitical risks
Energy market experts confirm that continued attacks on energy infrastructure and oil tankers reinforce the likelihood of prices remaining at high levels and fluctuating around the $100 per barrel mark for Brent crude. Observers believe that global markets are suffering from a weak general economic outlook, making it difficult to absorb additional price gains, while the balance of risks remains tilted toward the potential for a rise due to persistent geopolitical risks and their potential impact on the recovery of global energy supplies.
