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Oil prices remained volatile and pared part of their earlier gains, but still hold at elevated levels.
The market pulled back after the US allowed a temporary window for countries to buy stranded Russian oil and after the IEA confirmed a coordinated 400 million barrel emergency stock release.
These steps helped ease some immediate supply fears, although they could remain insufficient compared to the scale of the disruption.
The dominant driver continues to be the supply shock resulting from the ongoing tensions in the Middle East.
Disruptions in the Strait of Hormuz and on energy infrastructure could continue to fuel uncertainty, at a time when Gulf producers have cut output significantly.
The market could remain exposed to considerable volatility as market participants react to new developments. As such, any renewed tensions, shipping disruptions, or threats in the region could quickly push prices higher.
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