• WTI regains ground on supply concerns as attacks on Middle East energy infrastructure intensify.
• Gulf states are near direct involvement in the Iran conflict, with Saudi Arabia signaling a potential military shift.
• Several LPG vessels crossed the strait toward India, indicating it remains open but tightly controlled and highly restricted.

West Texas Intermediate (WTI) oil price rebounds after registering over 9% losses in the previous day, trading around $91.00 per barrel during the Asian hours on Tuesday. Crude oil prices regain their ground amid rising supply concerns as US-aligned Gulf states are moving closer to direct involvement in the Iran conflict as attacks on critical energy infrastructure intensify, raising the risk of a broader regional escalation.

The Wall Street Journal reported that Saudi Arabia has signaled a potential shift toward more direct military engagement, reflecting growing concern among key US partners in the region. The situation has further deteriorated after Israel and the United States launched a fresh wave of strikes on Iran.

Israel confirmed a second round of strikes, focusing on infrastructure targets in Tehran, underscoring the intensifying pace of military activity. In response, Tehran has escalated its own attacks on Gulf neighbors and warned it would target power plants across the region if its own facilities come under further assault.

Oil prices declined on Monday after US President Donald Trump delayed planned strikes on Iranian energy infrastructure by five days, citing what he described as productive discussions with Tehran.

However, Iranian officials have pushed back against this narrative. Foreign Minister Abbas Araghchi denied any engagement with Washington, while Parliament Speaker Mohammad Bagher Ghalibaf stated that no negotiations had taken place. Senior military adviser Mohsen Rezaei reinforced the hardline stance, saying the conflict would continue until Iran receives full compensation for damages incurred.

Market participants remain on edge, with uncertainty surrounding the potential reopening of the Strait of Hormuz continuing to weigh on sentiment. The conflict has effectively disrupted the vital chokepoint, through which around 20% of global oil supply typically flows, forcing Middle Eastern producers to scale back output significantly.

Nonetheless, there are tentative signs of limited transit resuming. Some vessels have reportedly managed to pass through the strait under strict Iranian control, with permissions required prior to transit. According to Kpler’s Amena Bakr, several LPG vessels successfully crossed the strait and are now en route to India, suggesting that while not fully closed, the passage remains highly restricted and subject to geopolitical risk.