Oil pares gains after Middle East tensions

April 06, 2026 / 1:56 PM

Cargo ships and containers are seen at the container terminal of the port in Qingdao, in China’s eastern Shandong province

Sharjah24 - WAM: Oil prices pared earlier gains Monday following a spike caused by renewed threats in the Middle East. Crude markets fluctuated after initial rises, reflecting both escalating tensions and reports of potential negotiations for a ceasefire between the United States and Iran.

Tokyo and Seoul shares closed higher, with Tokyo up 0.6 percent and Seoul gaining 1.4 percent. Other Asian markets were mixed, with Singapore rising 0.4 percent and Jakarta falling 0.5 percent. Many markets across Asia and Europe remained closed for Easter Monday and China's Qingming Festival.

Crude prices remain volatile

By late afternoon, US benchmark West Texas Intermediate fell 0.7 percent to $110.75 a barrel, while North Sea Brent was up 0.2 percent at $109.20. Analysts noted that reports of potential discussions for a temporary ceasefire eased investor sentiment, though risks remained elevated due to ongoing military threats.

Escalation risks continue

Authorities and analysts cautioned that rhetoric from both sides could trigger further volatility in oil markets. Threats to critical Iranian infrastructure, combined with Iran’s partial blockade of the Strait of Hormuz, continue to pose risks for global oil supply. The conflict, now in its sixth week, has disrupted energy markets and contributed to rising petroleum prices worldwide.