Oil prices moved higher on Tuesday, extending gains from the previous session as stalled U.S.-Iran diplomacy kept concerns about Middle East supply disruptions in focus.
The rise came despite signs that crude exports from the region are recovering.
Brent crude futures for November delivery gained around 1.5% to $106.90 per barrel, while West Texas Intermediate crude rose roughly 1.3% to $93.80 per barrel.
Brent had climbed close to $109 per barrel during the previous session before giving back part of those gains and settling near $105.
U.S.-Iran Talks Remain in Focus
Diplomatic uncertainty between Washington and Tehran continues to influence oil markets.
Qatari mediators were expected to hold separate discussions with Iranian Foreign Minister Abbas Araqchi and U.S. officials.
The talks were expected to focus on a revised seven-day proposal presented by Iran last week.
However, both sides reportedly remained doubtful that an agreement could be reached before the U.S. midterm elections.
As a result, concerns over possible disruptions to crude supplies from the Middle East have remained elevated.
Middle East Oil Exports Recover
Despite the diplomatic stalemate, physical oil flows from the region have improved.
Preliminary Kpler data showed that crude exports from major Middle Eastern producers reached approximately 12.8 million barrels per day in September.
That represented the highest level since February.
Saudi Arabia and the United Arab Emirates accounted for a large share of the increase.
Saudi Arabia Boosts Crude Shipments
Saudi crude exports through the Strait of Hormuz were on track to rise sharply during the month.
Riyadh had previously redirected shipments away from the Red Sea port of Yanbu after damage to the East-West pipeline disrupted the route.
However, Saudi Arabia has since repaired the pipeline and resumed exports through Yanbu.
This has restored an important alternative route that allows crude shipments to bypass the Strait of Hormuz.
East-West Pipeline Restores Key Export Route
The Saudi East-West pipeline has the capacity to transport as much as 7 million barrels of crude per day.
Following the restart, around 3.5 million barrels per day were reportedly moving through the pipeline.
The return of the route has improved Saudi Arabia’s ability to move crude without relying entirely on the Strait of Hormuz.
Even so, the recovery in exports has not been enough to remove broader market concerns.
Shipping Costs Keep Supply Risks Elevated
Transporting crude around the Gulf remains expensive and difficult.
Higher freight costs, security concerns and logistical disruptions continue to complicate shipments from the region.
This means that even with stronger export volumes, traders remain focused on the risk of renewed disruptions.
Diesel Markets Also Tighten
The disruption has also affected refined-product markets.
Record diesel prices have prompted the White House to consider regulatory changes that could expand sales of red-dyed diesel.
At the same time, speculation over possible U.S. restrictions on diesel exports has widened the spread between Brent and WTI crude prices.
These developments highlight how Middle East tensions are affecting not only crude oil markets but also refined fuels and global energy costs.
Oil Market Outlook
For now, oil prices remain supported by geopolitical uncertainty despite improving supply flows.
A breakthrough in U.S.-Iran negotiations could reduce some of the risk premium currently built into crude prices.
However, continued diplomatic deadlock could keep concerns over the Strait of Hormuz, shipping costs and regional supply disruptions firmly in focus.
