Brent crude oil prices rose to their highest level since May on Thursday after Yemen’s Iran-aligned Houthi group carried out more attacks in Saudi Arabia. The attacks raised fears that the conflict in the Middle East could spread further and disrupt oil supplies from one of the world’s most important oil-exporting regions.
Brent crude futures rose by $3.35, or 3.08%, to $112.17 a barrel by 0818 GMT on Thursday. This was the highest level since May 18. Brent prices had touched $112.55 a barrel earlier in the trading session. US West Texas Intermediate (WTI) crude futures also moved higher. WTI crude rose by $2.68, or 2.76%, to $99.83 a barrel, according to Reuters.
Brent crude oil prices rise amid supply fears
Oil market analysts said efforts to reduce tensions in Ukraine and the Middle East were not convincing enough to calm the markets. Attacks on ships in the Strait of Hormuz and Houthi strikes on Saudi Arabia and its oil infrastructure were raising concerns about oil supplies, despite reports that Middle Eastern crude exports had recovered to levels above those seen before the conflict, PVM Oil analyst Tamas Varga said.
Varga also said he did not expect the conflicts to ease before the US midterm elections. He said this could keep oil prices high in the coming weeks, according to Reuters.
Despite the security concerns, Middle Eastern crude oil exports remained high. Morgan Stanley analysts estimated that crude oil exports from the region stood at around 17 million barrels per day last week.
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The United States has also taken steps to protect its diplomatic staff in the region. The US State Department ordered some diplomats and their family members to leave American missions in Saudi Arabia. It also plans to withdraw family members from several other US diplomatic missions across the Middle East, US officials told Reuters.
Houthi attacks on Saudi Arabia raise oil concerns
Yemen’s Iran-aligned Houthi group attacked several targets in Saudi Arabia on Wednesday. At least one person was killed and eight others were wounded at a civilian airport in Dammam, while two people were killed in a drone attack on a Saudi oil field, Reuters reported.
The attacks on Saudi Arabia’s oil infrastructure have added to concerns about possible disruptions to oil production and exports. Any further escalation could make it harder to maintain stable supplies from the region, which plays a major role in the global oil market. Meanwhile, explosions were heard in Sirik in southern Iran on Wednesday, Iranian media reported.
Strait of Hormuz attacks threaten oil supplies
Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy said on Thursday that its forces had tracked four vessels involved in what it described as illegal oil transfers in the northern Gulf. The navy said all four vessels were hit simultaneously and caught fire on Wednesday.
The IRGC Navy also said three other vessels had collided with mines west of the Strait of Hormuz. It warned the US military that continued provocations could lead to a wider response against American military bases in the region, Reuters reported.
The Strait of Hormuz remains a key concern for oil markets because of its importance to global energy shipments. Attacks on vessels and further military escalation in the area could threaten the movement of crude oil and add pressure to prices.
Libya oil supply disruptions add to market pressure
Oil supply disruptions are also continuing in Libya. A valve on an oil pipeline connecting the Hamada and Tahara oilfields to the Zawiya port has been shut, reducing production at both oilfields, the head of Libya’s National Oil Corporation told Reuters.
The US administration is also taking steps to address rising fuel prices. The Trump administration is offering to loan out nearly one-third of the country’s 1-million-barrel emergency heating oil reserve as it seeks to contain prices that have surged amid diesel shortages.
The diesel shortages have been linked to the US-Israeli war with Iran and the ongoing war between Russia and Ukraine, according to Reuters. Higher fuel costs have added to pressure on governments and energy markets as supply concerns continue.
Ukraine peace talks in focus as oil prices rise
Separately, Russian President Vladimir Putin met US Special Envoy Steve Witkoff in St Petersburg on Wednesday. The meeting focused on efforts to end the war in Ukraine, as Washington renewed its push to stop Europe’s deadliest conflict since World War Two, Reuters reported.
The Kremlin said Putin had agreed to resume US-mediated peace talks with Ukraine as soon as next month. Ukrainian President Volodymyr Zelenskiy also expressed support for the talks and said he hoped they would begin as soon as possible, according to Reuters.
However, uncertainty over the conflicts in the Middle East and Ukraine continues to weigh on the oil market. Fresh attacks, threats to shipping routes and disruptions to production have increased concerns about the reliability of global crude supplies.
Brent crude’s rise above $112 a barrel reflects these growing supply concerns. Traders are watching developments in Saudi Arabia, Iran, the Strait of Hormuz and Ukraine closely, as any further escalation could push oil prices higher, Reuters reported.