Oil prices rise as Houthi attacks fuel supply fears

Oil prices rise as Houthi attacks fuel supply fears

Oil prices climbed on Tuesday, with Brent crude hovering near a five-month high as escalating geopolitical tensions and reported attacks on vessels in the Gulf heightened concerns over global energy supplies.

Brent crude futures rose 55 cents, or 0.50%, to $110.10 per barrel after reaching $110.70 in the previous session, its highest level since May 20.

US West Texas Intermediate (WTI) crude for November delivery, which expires on Tuesday, gained 0.24% to $103.91 per barrel. The more actively traded December contract increased by 39 cents, or 0.40%, to $98.93.

Analysts at ING said oil prices remained supported by a significant geopolitical risk premium amid uncertainty surrounding the regional situation. They added that the premium could gradually decline if oil shipments continued without disruption, although there were no clear signs of that happening yet.

Shipping intelligence firm Kpler reported that at least 18 vessels had come under attack over the previous two weeks, keeping concerns about maritime security and energy supplies elevated.

Yemen’s Houthi group claimed on Monday that it had launched multiple attacks targeting Saudi energy, airport and military facilities. The targets reportedly included an Aramco facility in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh and Abha airport.

Saudi authorities had not immediately confirmed the claims, while Reuters said it could not independently verify them.

Separately, a Houthi attack on a training camp for government security forces in Yemen’s Shabwa province killed 58 people and injured more than 200 on Monday.

Meanwhile, a preliminary Reuters poll indicated that US crude oil inventories likely declined last week, alongside stocks of refined petroleum products. The expected drawdown provided additional support to oil prices.

Market participants also monitored uncertainty over US sanctions policy toward Russia. On Friday, President Donald Trump signed an executive order waiving key Russia-related sanctions and tariffs, including certain duties and penalties linked to purchases of Russian energy.

However, Trump said on Saturday that he had not announced a final decision on the matter. US Secretary of State Marco Rubio also said officials needed more time to assess the situation.