Key facts
- Oil prices increased due to escalating hostilities in the Middle East.
- The Yemeni Houthis attacked Saudi Arabia's Najran province, resulting in civilian deaths.
- Tensions in the Strait of Hormuz have intensified with reports of Iran considering vessel bans and fees.
- Saudi Arabia and the UAE have blamed Iran for an attack on a UAE oil tanker in the Strait of Hormuz.
- The Houthi attacks, including on Saudi tankers in the Red Sea, are contributing to rising oil prices.
Oil prices have risen amid escalating tensions in the Middle East, following Houthi attacks in Saudi Arabia and threats to maritime navigation in the Strait of Hormuz. The Yemeni Houthis struck Saudi Arabia's southern province of Najran, killing 11 civilians, according to a spokesman for the Saudi-led coalition fighting the Houthis. This development follows reports that Iran is considering banning U.S., Israeli, and other "hostile" vessels from the Strait of Hormuz, potentially imposing fines or passage fees.
Brent crude recovered above $80 per barrel, trading at $83.80, while West Texas Intermediate also rebounded to $78.33. A senior Saudi official indicated that the Houthis and Iran-affiliated Iraqi groups were planning a coordinated attack on Saudi civilian targets, including energy infrastructure. The Houthis have also targeted Saudi tankers in the Red Sea. These events contrast with recent optimism from U.S. Treasury Secretary Scott Bessent, who had suggested that oil flows via Hormuz could resume soon. Analysts at ING noted that increasing distrust between the U.S. and Iran could lead to a worsening situation.