FX.co ★ Oil Steady as Traders Weigh Middle East Risks

Crude oil prices hovered near $91 per barrel on Monday as investors focused on escalating tensions in the Middle East, while OPEC+ opted to keep production quotas unchanged for next month. Saudi-backed forces in Yemen launched a full-scale military offensive to recapture territories held by the Iran-aligned Houthi movement, following weeks of rising friction between the two sides. The Houthis have seized control of the Bab el-Mandeb Strait, a key maritime chokepoint between the Red Sea and the Gulf of Aden that Saudi Arabia had been using as an alternative export route to bypass the Strait of Hormuz. At the same time, leading OPEC+ producers agreed over the weekend to maintain current output targets despite ongoing supply disruptions linked to the regional conflict. The decision comes as crude prices move back toward the $100-per-barrel mark and diesel prices hit record highs at the pump, prompting G7 countries to tap emergency oil reserves in response to the continuing turmoil.