Oil rises as hopes for diplomacy offset impact of renewed Houthi attacks

Oil benchmarks edged higher on Tuesday as traders weighed diplomatic efforts in Tehran against fresh Houthi attacks on Saudi Arabia. By 0918 GMT, Brent had gained 45 cents, or 0.39%, to $116.26 a barrel, while US West Texas Intermediate added 40 cents, or 0.39%, to $102.16. Both contracts had earlier fallen 1% before recovering.

Saudi Arabia, Turkiye and Pakistan met Iranian officials on Monday, with the four sides agreeing to keep discussing peace and security cooperation, Iranian state media said. But the renewed attacks on Saudi Arabia kept regional supply concerns alive, while Gulf crude exports declined for a fourth consecutive week and flows through the Strait of Hormuz stood at about 60% of normal, ANZ said. Investors were also watching Israel’s general election for possible implications for foreign and trade policy in the conflict.