Oil prices edged higher early on Tuesday as traders weighed fresh Middle East tensions. Analysts noted that Iran and Israel agreed to pause further hostilities, yet Yemen’s Houthis warned of a full ban on Israeli vessels in the Red Sea, tightening a vital shipping corridor for Saudi crude.

The restriction threatens the Red Sea route that feeds into the Gulf of Aden and the Arabian Sea, a key conduit for Saudi exports. Any slowdown could lift pressure on benchmark WTI futures, which ticked up 0.1% to $91.40 a barrel in early trade.

ANZ Research flagged uncertainty over what qualifies as an Israeli ship, adding complexity to the risk assessment. Market participants view the development as a potential catalyst for higher oil prices, especially if shipping delays compound existing supply constraints.

With WTI futures already nudging higher, the scene underscores how geopolitical flashpoints can ripple through commodity markets. Investors now monitor shipping lanes closely, ready to adjust exposure as the Red Sea situation evolves.

The modest rise in futures reflects a market balancing optimism about de‑escalation with caution over lingering disruptions. Analysts suggest that any renewed flare‑up could push prices above the $95 a barrel threshold, prompting strategic hedging by oil producers and refiners.