Brent holds above $110 as attacks in Saudi Arabia rattle oil markets

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Brent holds above $110

Highlights

Brent falls 1.32%, while WTI drops 2.09%.
Houthi attacks threaten Saudi oil infrastructure.
Iran diplomacy offers relief amid shipping risks.

Brent futures for January 2027 fell to $110.22 a barrel, down 1.32%, while US West Texas Intermediate (WTI) futures for December 2026 dropped to $101.11, losing 2.09%. According to Reuters, oil prices declined as diplomatic efforts to ease tensions between the United States and Iran raised hopes of de-escalation, although continued attacks on Saudi Arabian energy infrastructure limited losses.

Saudi infrastructure attacks limit oil price declines

The latest pullback follows a strong week for crude markets. Brent gained approximately 6% over the previous five sessions, while WTI advanced 2.3%. Both benchmarks rose nearly $3 on Friday after attacks on Saudi Arabia heightened concerns about regional production and transportation.

Over the weekend, Yemen’s Houthi movement claimed strikes against pumping stations along Saudi Arabia’s East-West oil pipeline and Riyadh airport. Saudi authorities subsequently reported intercepting additional missiles and drones.

The attacks have raised questions about the security of infrastructure used to transport crude when traditional maritime routes face disruption. Damage to pipelines or related facilities could complicate efforts to maintain exports even if diplomatic negotiations reduce tensions elsewhere.

Diplomatic efforts offer limited relief

Regional governments are pursuing negotiations aimed at containing the conflict that began with US and Israeli military operations against Iran on February 28.

Qatari representatives traveled to Tehran on Sunday to support de-escalation efforts coordinated with Washington. Saudi Arabia, Turkey, and Pakistan have also been involved in discussions intended to reopen diplomatic channels.

Those initiatives have provided some relief to oil markets, but security conditions remain uncertain. Commercial shipping through the Strait of Hormuz and Bab el-Mandeb continues to face risks, complicating transportation schedules and increasing pressure on international energy supply chains.

Supply security remains the central market concern

The International Energy Agency has warned that energy markets may not return to their prewar conditions in 2027. Meanwhile, Saudi Aramco plans to begin storing crude in Singapore during the second half of next year, strengthening its ability to serve Asian customers during disruptions.

For consumers and industrial businesses, prolonged oil prices above $100 a barrel could sustain pressure on transportation, manufacturing, and energy costs. Further price movements will depend on whether negotiations deliver tangible improvements in regional security and whether Saudi infrastructure remains exposed to attacks.

Earlier, we reported that Iran pushes a diplomatic plan to reopen the Strait of Hormuz amid U.S. conflict.

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