Update: WTI Oil Closes Lower Despite Renewed Violence in Middle East

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Update: WTI Oil Closes Lower Despite Renewed Violence in Middle East

, MT Newswires - 2:40 PM ET 3/18/2025 default

02:40 PM EDT, 03/18/2025 (MT Newswires) -- West Texas Intermediate (WTI) closed with a loss on Tuesday as talks between U.S. President Donald Trump Russia' Vladimir Putin for a Ukraine ceasefire offset rising tensions in the Middle East after Israel broke its Gaza ceasefire with the Hamas militant group by launching strikes that left hundreds dead.

WTI crude oil closed down US$0.68 to settle at US$66.90 per barrel, the highest since Feb.28, while May Brent crude was last seen down US$0.51 to US$70.56.

Putin and Trump held a phone call on Tuesday to discuss a potential ceasefire in Ukraine, which has not been included in talks. Still, the discussions raise concerns about a possible easing of sanctions on Russian oil exports.

The talks come after Israel launched overnight airstrikes on Gaza, killing more than 400 Palestinians according to The Guardian, and ending the two-month ceasefire with Hamas. The renewed hostilities come a day after Israeli Prime Minister Benjamin Netanyahu said he will fire the head of Shin Bet, the country's security service, amid its investigation over alleged payments from Qatar to senior members of Netanyahu's staff.

Trump, who on the weekend launched large-scale attacks on Yemen's Houthi militants, on Monday said he will hold Iran responsible for any further attacks on Red Sea shipping by the group. Trump said Iran will face "dire" consequences for any further attacks on shipping by the militant group, raising the prospect of war in the Persian Gulf, a region that produces nearly a third of the world's oil demand.

"While oil has not been a major casualty of the two and a half years of ongoing unrest in the region, any escalation that involves a direct confrontation with Iran still poses a clear risk to regional supplies," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, said in a note.

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