Global oil markets experienced volatility on Tuesday as Brent crude prices climbed 2% to reach $98.26 per barrel. The upward movement follows recent U.S. military operations in southern Iran, where forces targeted missile launch sites and vessels suspected of deploying mines. The U.S. Central Command stated that these defensive strikes were necessary to safeguard personnel against threats from Iranian forces.

Market uncertainty has been further compounded by shifting diplomatic signals regarding negotiations between Washington and Tehran. While there have been suggestions that talks are progressing, the possibility of renewed military action remains a factor, with officials emphasizing that any agreement must be comprehensive. Simultaneously, efforts to expand the Abraham Accords to include nations such as Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, and Jordan have added a complex layer to the regional geopolitical landscape.

Financial analysts at UBS have highlighted significant strain within the global oil market, noting that inventories have faced consistent depletion. Data indicates that global oil stockpiles fell by 246 million barrels across March and April, with cumulative production losses potentially surpassing 1 billion barrels by the end of May. These sharp drawdowns suggest that the market remains in a state of significant undersupply, even as logistical adjustments, such as the rerouting of U.S. exports to Asia, continue to influence storage patterns.