Oil prices are stable today after earlier gains saw Brent crude briefly surpass $110 and WTI exceed $101. Traders are considering increased Middle East oil exports against ongoing threats to shipping in the Strait of Hormuz. Two oil tankers reportedly caught fire after hitting mines near the Strait, highlighting shipping risks. Despite higher exports, shipping remains vulnerable to attack, with freight and insurance costs remaining exceptionally high. Regional tensions are also a concern, as Saudi Arabia intercepted drones targeting its oil-producing regions. Diplomatic efforts continue, with ongoing communication between Washington and Tehran aimed at de-escalation and reopening the Strait of Hormuz. US crude inventories decreased for the third week, exceeding expectations, while gasoline stocks saw a significant drawdown. Distillate stocks, however, remain at record lows for this season. US crude production also fell due to storm-related shut-ins. Physical oil markets are showing signs of cooling in some areas, with a key Middle East benchmark weakening. Higher shipping costs are redirecting some American oil supplies, impacting the Dated Brent physical benchmark.