Oil up as Iran continues to strike Arab energy infra

Oil rebounded after the first drop in almost a week, as Iran pressed on with attacks on energy infrastructure around West Asia.

Brent climbed above $104 a barrel, after slipping almost 3% on Monday, while West Texas Intermediate was around $97. Operations were suspended at the Shah gas field in the United Arab Emirates, while an Iraqi oil field was also targeted by drones and missiles. Crude loadings from the UAE's port at Fujairah were again halted, according to a note from Inchcape Shipping Services.

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The strikes further hampered the outlook for global energy supplies as the war enters its third week, with a near-complete halt of shipping through the Strait of Hormuz starting to impact consumers, especially in Asia. Oil has risen more than 40% since the war started, but prices declined on Monday as the US prepared to release the first tranche of emergency crude reserves.

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Washington is letting Iran continue shipping crude via the waterway, Treasury Secretary Scott Bessent told CNBC. He also said that the US hasn't intervened in energy derivatives markets. In West Asia, the UAE and Kuwait have both reduced oil output further. Saudi Arabia is racing to boost exports through an alternative route that bypasses Hormuz. The number of Iranian ships crossing the waterway jumped to a wartime high on Monday.