Oil futures poised for turbulent trading as Middle East tensions simmer

Crude oil futures are expected to remain volatile in the coming week as uncertainty surrounding US-Iran talks and mounting tensions across West Asia maintain elevated supply risks, according to market analysts. While prospects for a deal to reopen the Strait of Hormuz could provide some downward pressure on prices, geopolitical headwinds appear likely to persist.

US President Donald Trump's recent statement that Washington is considering military support for Saudi strikes against Iran-backed Houthi rebels in Yemen has intensified concerns about regional stability. The comment followed an attack on Riyadh's international airport, further raising the temperature in an already tense geopolitical environment.

Energy shipments through critical chokepoints remain at risk, particularly the strategic Bab el-Mandeb Strait, a vital conduit for global oil supplies. The widening conflict in the region has heightened investor anxiety over potential disruptions to energy flows.

Market participants will closely monitor key data releases in the coming week, including monthly oil market reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency. Weekly inventory figures from the American Petroleum Institute, alongside US government data on crude stocks and imports, will also provide direction to price movements. The interplay between supply concerns and any signs of diplomatic progress will likely dictate market direction.