CALGARY — Global oil markets may be showing tentative signs of stabilizing this week, though the situation remains highly volatile as fighting between the United States and Iran continues to escalate in the Middle East.
Benchmark crude prices, which surged after the outbreak of hostilities, have fluctuated sharply in recent trading. West Texas Intermediate crude has been trading roughly in the mid to high US$80s per barrel, while Brent crude has moved in a range from the high US$80s to the low US$90s.
U.S. secretary of War and former weekend anchor with Fox News, Pete Hegseth said Tuesday could bring the most intense day of American strikes inside Iran since the conflict began. Iran has responded with attacks targeting Israel and locations in the Gulf region.
The conflict has also heightened tensions around the Strait of Hormuz, a vital shipping route that carries roughly one-fifth of the world’s oil supplies.
U.S. President Donald Trump warned of severe consequences if Iran continues blocking the waterway, while Iranian officials have suggested exports from the region could remain disrupted as long as American and Israeli strikes continue.
Trump has also offered mixed signals about how long the conflict could last, at times describing the operation as limited while also indicating the United States has not yet achieved all of its objectives.
Despite the volatility affecting global benchmarks, Canada’s oil sands crude has strengthened in recent trading.
Western Canadian Select, a main benchmark for oilsands production, has narrowed its price discount in recent weeks and is trading above US$80 per barrel, just a few dollars below West Texas Intermediate.
Market analysts at Oilprice.com say Canadian crude may be benefiting from what some describe as a stability premium, as buyers look for supplies from regions not directly affected by the conflict or broader geopolitical tensions.
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