Oil climbs for second day as Middle East supply worries outweigh export gains

For the second consecutive day, oil markets saw price increases, with Brent crude up 0.6% to $105.91 a barrel and U.S. West Texas Intermediate up 0.8% to $93.32. The rally reflects persistent worries about supply disruptions linked to the US-Iran conflict, which outweigh signs of recovering Gulf export volumes. While total crude shipments from the region rose to 12.8 million barrels per day, much of the growth depends on inefficient ship-to-ship transfers, a factor that sustains higher prices.

Analysts attribute the lack of a sustained breakout above $110 per barrel to the lingering hope of a diplomatic settlement. Talks between US and Iranian officials, mediated by third parties, are focusing on an amended version of Iran's recent seven-day proposal presented at the UN General Assembly. Meanwhile, the United States is weighing regulatory relief to broaden sales of red-dyed diesel, a move intended to ease fuel costs by allowing some buyers to bypass federal taxes.