Oil prices hit near two-week highs as Houthi strikes threaten Gulf shipping

Traders Union
All News
Commodities
Oil prices hit near two-week highs

Highlights

Brent rises 1.92%, while WTI rose 2.00%.
Houthi attacks increase Saudi supply risks.
Tanker strikes threaten Hormuz shipping.

The market reversed earlier losses as traders reassessed the risks to regional energy infrastructure and shipping, Reuters reports. December Brent crude futures rose to $106.73 a barrel, gaining $2.01, or 1.92%, while November West Texas Intermediate futures reached $93.69, up $1.84, or 2.00%, according to the latest market quotes provided.

Saudi attacks raise fears of further escalation

Houthi militants claimed responsibility for a Saturday attack on Riyadh's international airport that killed 13 people and injured more than 300. Additional strikes followed on Sunday, intensifying pressure on Saudi authorities as the kingdom supports Yemeni government forces fighting the Iran-aligned group near the Red Sea.

The escalation has renewed concerns about the security of Saudi energy facilities and transport infrastructure. Saudi Arabia is a major crude exporter, and continued missile and drone attacks could force the kingdom to devote additional resources to protecting airports, oil installations, and other strategic sites. The conflict also threatens to complicate efforts to restore more reliable oil flows from the region.

Tanker strikes threaten shipping through Hormuz

Maritime security concerns have grown following fresh attacks on commercial vessels near the Strait of Hormuz, a vital route for global energy shipments. The United Kingdom Maritime Trade Operations reported that a tanker was struck by a drone near Sohar, Oman, while another vessel sustained damage while passing through the strait.

The incidents threaten the recovery in Middle Eastern crude exports recorded in September. Even when shipments continue, attacks can increase insurance costs, complicate vessel scheduling, and discourage operators from entering high-risk waters. Goldman Sachs raised its December Brent forecast to $90 from $85 a barrel, estimating that geopolitical risks currently account for more than $20 of the benchmark's price.

Russian diesel supplies fail to ease crude concerns

President Donald Trump announced that Russia would supply more than 300,000 metric tons of diesel to international markets and claimed that Moscow and Kyiv had agreed to an energy ceasefire. However, Ukraine accused Russia of violating the arrangement on Monday, while uncertainty remained over how much additional fuel Russian refiners could deliver.

ICE gasoil futures fell 2.3% to $1,449 per metric ton following the diesel announcement. Meanwhile, Shell, Chevron, and BP were working to restore offshore production in the Gulf of Mexico after Hurricane Isaias. The International Energy Agency also urged countries to assess whether further diesel releases were needed.

For crude traders, the immediate concern is whether attacks on Saudi Arabia and commercial shipping will disrupt physical supply. Additional Russian fuel exports may ease pressure in diesel markets, but they offer limited protection against interruptions to tanker traffic through Hormuz. Continued attacks could keep crude prices elevated even as other producers restore output.

We also reported global markets brace for geopolitical risks as Middle East, and Ukraine tensions escalate.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.