Oil extended gains this week as markets quickly digested a brief dip after Trump
issued sanction waivers for Russia; upside remains driven by heightened Middle
East tensions and a deadlock in US‑Iran talks. Houthi forces said yesterday they
struck multiple Saudi energy facilities, airports and military targets, an
escalation that is sustaining the oil risk premium. Al Arabiya reported an
expected breakthrough in US‑Iran negotiations this week, but similar vague
reports have failed to materialize and warrant caution. If talks unexpectedly
break through, oil could face heavy selling and revert toward pre‑conflict
levels; conversely, a prolonged stalemate or further escalation would continue
to support prices.
