Oil Rebounds Amid Iran Risks and Reserve Release
Oil prices rebounded after a steep selloff, with traders recalibrating Middle East supply risks against the prospect of additional barrels entering the market through emergency stockpile releases.
West Texas Intermediate traded near $95 a barrel in early Asian hours, recovering after sliding more than 5% on Monday. Brent settled above $100 for a third consecutive session, underscoring how risk premiums remain embedded even as prices pull back on policy-related supply cushions.
The market is weighing escalating regional attacks on energy assets, including a reported drone strike on the Shah natural gas field in the United Arab Emirates. At the same time, Washington signaled its intent to release the first tranche of emergency crude reserves, while the International Energy Agency indicated there was room to tap stockpiles further, adding a near-term offset to disruption fears.
Geopolitics remains the dominant transmission channel. The Strait of Hormuz, described as effectively closed since the conflict began late last month, is central to the supply-risk narrative. US President Donald Trump said the US was “hammering” Iran's ability to threaten commercial shipping through the route and threatened the possibility of expanding strikes to oil infrastructure, including Kharg Island. Still, officials suggested the US is currently allowing Iran to continue shipping crude via Hormuz, a nuance that could temper the most acute worst-case scenarios priced into the curve.
Price action reflects a tug-of-war between headline-driven risk premiums and policy-driven supply reassurance. Emergency releases and the prospect of coordinated stock draws can cap the upside by reducing immediate scarcity, but attacks on energy infrastructure and uncertainty around shipping routes keep volatility elevated and limit the durability of pullbacks.
WTI for April delivery was up 1.6% at $94.95 a barrel at 6:50 a.m. in Singapore. Brent for May settlement fell 2.8% to settle at $100.21 a barrel in New York on Monday.
Investors will be watching the scale and timing of US reserve releases, any follow-through from the IEA on additional stock draws, and operational signals from the region—especially around energy infrastructure security and the functionality of Hormuz—as the key variables shaping near-term pricing.(asd)
Source: Newsmaker.id
