Oil prices softened on Wednesday after Iraq and Kurdish authorities reached an agreement to resume crude exports via Turkey’s Ceyhan port, providing some relief amid persistent Middle East supply disruptions. Brent futures remained above $100 per barrel, reflecting ongoing geopolitical tensions and uncertainty in global energy markets.
Brent crude fell 67 cents, or 0.65%, to $102.75 per barrel by early Wednesday, while U.S. West Texas Intermediate dropped $1.18, or 1.23%, to $95.03. Analysts noted that the deal offers limited relief as overall Middle East exports remain constrained.
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Iraq’s Oil Minister Hayan Abdel-Ghani confirmed that crude flows from Ceyhan were expected to start Wednesday morning, aiming to pump at least 100,000 barrels per day. However, analysts stressed that Iraq’s southern oilfields continue to operate at reduced capacity, producing only 1.3 million barrels daily due to the Strait of Hormuz blockade.
The Iran conflict continues to weigh on oil markets, with senior Iranian security chief Ali Larijani killed in an Israeli attack. Tehran’s new supreme leader has reportedly rejected de-escalation proposals, keeping tensions high and global oil supply vulnerable.
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Meanwhile, the United States military targeted Iranian coastal sites near the Strait of Hormuz, citing risks from Iranian anti-ship missiles. Despite these military actions, energy experts caution that full restoration of oil flows could take time, keeping prices elevated.
Market observers noted that while the Iraq-Kurd deal offers temporary relief, the broader Middle East conflict still dominates oil price dynamics. Investors continue to monitor developments closely, as further disruptions could push Brent and WTI prices higher in coming weeks.