Key facts
- Oil prices rose about 3% to a one-week high on Thursday.
- Brent futures settled at $106.60 a barrel.
- US West Texas Intermediate crude rose to $94.61 a barrel.
- Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis.
- US and Iranian negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.
Oil prices climbed about 3% on Thursday to a one-week high after a Houthi missile attack on Saudi Arabia revived fears of supply disruptions. Brent futures rose $3.52, or 3.4 per cent, to settle at $106.60 a barrel, while US West Texas Intermediate crude rose $2.45, or 2.7 per cent, to settle at $94.61. At their session highs, both contracts were up about 5 per cent.
Saudi Arabia intercepted six ballistic missiles fired by Yemen's Iran-backed Houthis, thwarting attacks on the southern province of Taif and Yanbu area on the Red Sea, the Saudi-led coalition in Yemen said. Iranian airlines were barred from neighboring countries including the UAE and Oman in response to new US sanctions, a practice known as 'secondary sanctions.' On Wednesday, Iran threatened to retaliate against neighboring countries that comply with the US ban on its flights.
Separately, US and Iranian negotiators in New York are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran, sources close to the talks said. The strait has become a central bargaining chip in efforts to end the nearly seven-month US-Iran conflict.
In related news, US Energy Secretary Chris Wright has contacted executives at several major American refiners to gauge support for a voluntary restriction on diesel exports, as the Trump administration searches for an alternative to a short-term ban. Politico reported that the US was preparing a 90-day ban on diesel exports due to a price spike ahead of November midterm elections, a report Wright has disputed.