Oil prices climbed on Monday as deadly attacks on Riyadh’s international airport heightened concerns about Middle East energy supplies. However, gains remained limited after US President Donald Trump announced a possible energy ceasefire between Russia and Ukraine.
Brent crude futures for December delivery rose 1.3% to $106.10 per barrel as of 07:52 ET (11:52 GMT). Meanwhile, West Texas Intermediate (WTI) crude futures advanced 1.4% to $93.10 per barrel.
Earlier in the session, Brent had fallen as low as $102.33 as investors considered whether a potential Russia-Ukraine agreement could reduce disruptions to global fuel supplies.
Nevertheless, renewed instability in the Middle East helped reverse those losses, keeping oil markets sensitive to geopolitical developments.
Oil Prices Rebound Despite Trump’s Energy Ceasefire Announcement
Crude oil initially declined after President Trump claimed that Russia and Ukraine had reached an agreement to halt attacks on energy infrastructure, effective immediately.
The announcement raised hopes that reduced hostilities could improve Russian fuel production and exports, potentially easing pressure on global energy markets.
However, neither Moscow nor Kyiv had officially confirmed the proposed ceasefire.
Trump had previously announced a similar energy-related agreement in mid-September, although that initiative also lacked confirmation from either country.
The latest announcement therefore left investors uncertain about whether meaningful changes to energy supply conditions would follow.
While the prospect of fewer disruptions initially pressured oil prices, ongoing geopolitical risks prevented a sustained decline.
Trump Pressures Ukraine Over Russian Oil Refinery Attacks
The proposed energy ceasefire comes amid growing tensions between Washington and Kyiv over Ukrainian attacks on Russian oil infrastructure.
During the weekend, Trump increased pressure on Ukrainian President Volodymyr Zelenskyy to stop targeting Russian refineries.
The US president also called for a change in Ukraine’s leadership, further highlighting disagreements between the two governments over the direction of the conflict.
Ukraine has intensified attacks against Russian oil refining facilities and shipping infrastructure in recent weeks, disrupting fuel production and distribution.
Trump has blamed these operations for contributing to higher global oil prices, although the broader energy crisis has also been influenced by the ongoing conflict involving Iran.
On Friday, Trump announced a diesel supply agreement with Russia aimed at increasing fuel availability and reducing prices for American consumers.
The announcement followed a sharp increase in fuel costs, which has placed additional pressure on households and businesses.
However, uncertainty remains over whether the proposed arrangements will generate sufficient additional supply to meaningfully reduce global oil prices.
Strait of Hormuz Tensions Keep Crude Oil Supply Risks Elevated
Despite optimism surrounding a possible Russia-Ukraine energy agreement, supply disruptions in the Middle East continue to support crude oil prices.
Iran recently described a US proposal to reopen the Strait of Hormuz as insufficient, raising doubts about progress toward restoring normal maritime traffic.
The strategically important waterway plays a central role in international oil transportation, connecting major Persian Gulf producers with global energy markets.
Since late September, increased attacks against commercial shipping in the region have severely disrupted tanker movements and fuel deliveries.
These developments have contributed to higher transportation costs and increased concerns about the availability of crude oil.
Consequently, traders remain cautious about the potential for further supply shortages, particularly if hostilities continue or spread to additional energy infrastructure.
Riyadh Airport Attacks Intensify Middle East Energy Concerns
Renewed hostilities between Saudi Arabia and Yemen’s Houthi rebels have added another source of uncertainty to global oil markets.
Over the weekend, Houthi forces launched additional attacks targeting Riyadh, including strikes against the Saudi capital’s major international airport.
The deadly incidents heightened concerns about the security of critical infrastructure across the region.
Although the attacks did not directly target major oil production facilities, they reinforced fears that escalating hostilities could threaten energy transportation and supply networks.
Saudi Arabia remains one of the world’s most important crude oil producers, making developments affecting the kingdom particularly significant for global energy markets.
As a result, the latest violence has helped maintain a geopolitical risk premium in crude oil prices.
Hurricane Isaias Disrupts US Gulf Coast Oil Production
Meanwhile, oil traders are also monitoring supply disruptions in the United States following Hurricane Isaias.
The storm made landfall along the US Gulf Coast last week, causing widespread damage and forcing energy companies to temporarily suspend operations.
More than 60% of regional oil production was reportedly taken offline ahead of the hurricane as operators evacuated personnel and implemented safety measures.
The shutdowns have added another layer of uncertainty to global crude oil supply, particularly as Middle Eastern disruptions continue.
The extent and duration of these production interruptions will depend on infrastructure conditions and how quickly energy companies can safely resume operations.
Prolonged outages could restrict US crude supplies and provide additional support for international oil prices.
Oil Price Outlook Remains Driven by Geopolitical and Supply Risks
Looking ahead, crude oil prices are likely to remain sensitive to developments in the Middle East, the Russia-Ukraine conflict and US production disruptions.
A confirmed energy ceasefire between Moscow and Kyiv could improve expectations for global fuel availability and potentially ease some upward pressure on prices.
However, continued threats to shipping through the Strait of Hormuz and escalating attacks in Saudi Arabia could offset any improvement in Russian energy supplies.
At the same time, the recovery of US Gulf Coast production following Hurricane Isaias will remain an important factor for near-term supply conditions.
For now, Brent crude remains above $106 per barrel, reflecting persistent concerns about energy security and the risk of further disruptions across major producing regions.
