On an early Wednesday morning, the price of oil edged upward as the world's markets weighed a widening set of dangers at sea and on land. Brent crude climbed to about $109.64 a barrel, and the reasons were gathering in the Gulf: tankers struck near the Strait of Hormuz and beyond it, and Houthi forces claiming strikes on Saudi energy sites and airports. It is the familiar shape of a conflict that refuses to stay in one place, where the cost of moving energy becomes a quiet tax on everyone who depends on it. Diplomacy has been offered, but no answer has yet come back, and the market, like many
Oil Climbs Above $109 as Tanker Attacks and Houthi Strikes Raise Middle East Supply Fears
A Houthi attack on Yemeni government forces raised the reported death toll to 73 as fighting intensified.
Attacks on tankers have expanded beyond the Strait of Hormuz
Mark
Prices only rose under one percent. Why does this story matter?
Mimi
Because of the range. Brent hit $111.99 on Tuesday, a five-month high, then settled lower. The market is swinging on each headline.
Mark
What's new about the shipping threat?
Mimi
LSEG says attacks have moved south into the Gulf of Oman, which puts loadings outside the Arab Gulf at risk, along with ship-to-ship transfers.
Luke
Careful with the Iranian account, though. The claim that the supertanker was violating regulations comes from the Revolutionary Guards via Iranian media. It isn't independently confirmed here.
Mark
And the 18 attacks?
Luke
That's Kpler's count of reported attacks over two weeks. Reported is the key word, and we don't know who carried out each one.
Mimi
Same with the Houthi claims on Yanbu, Shaybah and the two airports. They are claims. The source gives no damage assessment.
Mark
What about the 73 dead?
Mimi
That's the toll from a Houthi attack on Yemeni government forces, and it rose as fighting intensified. It's the human cost sitting under the price numbers.
Luke
Also unknown: whether the mediation offer goes anywhere. Araqchi says there's been no reply from Riyadh or the Houthis. Prices dipped on talk of mediation, not on any deal.
Der Puls
- Brent touched a five-month high near $112 before settling, and the market is jumping at every new report from the water.
- At least 18 vessel attacks in two weeks have pushed the danger from the Strait of Hormuz down to the Gulf of Oman, threatening loadings that were thought to be safe.
- Houthi claims of strikes on Saudi Aramco's Yanbu site, the Shaybah oilfield, and two airports have put Saudi energy infrastructure directly in the line of fire.
- Iran's offer to broker talks remains unanswered by Riyadh and the Houthis, leaving the path to de-escalation unclear.
- Washington is racing to lift fuel output as a diesel shortage tightens supply, while the reported death toll in Yemen has climbed to 73.
On an early Wednesday morning, the price of oil edged upward as the world's markets weighed a widening set of dangers at sea and on land. Brent crude climbed to about $109.64 a barrel, and the reasons were gathering in the Gulf: tankers struck near the Strait of Hormuz and beyond it, and Houthi forces claiming strikes on Saudi energy sites and airports. It is the familiar shape of a conflict that refuses to stay in one place, where the cost of moving energy becomes a quiet tax on everyone who depends on it. Diplomacy has been offered, but no answer has yet come back, and the market, like many before it, waits to learn whether the sea and the desert will calm or spread further.
Oil prices rose early on Wednesday, with Brent crude up to $109.64 a barrel and US West Texas Intermediate at $98.58. Traders were focused on two fronts: the danger to shipping in the Red Sea and the Gulf, and the threats hanging over Saudi Arabia's oil infrastructure. The day before, Brent had reached $111.99, a five-month high, before easing back. The market is nervous, and it has reason to be.
At sea, the attacks are multiplying. Iran's Revolutionary Guards said a supertanker caught fire after hitting a mine south of the Strait of Hormuz, claiming the ship had broken Iranian rules. Shiptracker Kpler counted at least 18 vessel attacks over two weeks. Analysts at LSEG warn the danger has spread as far as the Gulf of Oman, putting at risk the ship-to-ship transfers that have kept Middle Eastern oil moving as the conflict drags on.
On land, the Houthis claimed strikes on a Saudi Aramco site at Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha. In Yemen, a Houthi attack on government forces pushed the death toll to 73 as fighting grew fiercer.
Diplomacy has so far produced silence. Iran's foreign minister said no reply has come from Saudi Arabia or the Houthis to Tehran's offer to help broker peace. Meanwhile in the United States, Energy Department officials are working with refiners worldwide to raise fuel output in response to a diesel shortage. Markets will now watch official inventory data, any answer from Riyadh or the Houthis, and whether the attacks keep moving outward from Hormuz.
Oil crept higher early on Wednesday, with Brent crude futures up 85 cents, or 0.78%, at $109.64 a barrel as of 0022 GMT. US West Texas Intermediate rose 76 cents, also 0.78%, to $98.58. Traders were watching two things: shipping risk in the Red Sea and threats to oil infrastructure in Saudi Arabia.
The previous day gave a sense of how jumpy the market is. Brent settled on Tuesday at $108.79, down 76 cents, or 0.69%, but only after touching $111.99, a five-month high. The November WTI contract expired Tuesday and settled down $1.87, or 1.8%, at $101.79. Prices had slipped earlier in that session after Iran's president discussed mediation efforts with Pakistan's army chief in Tehran.
At sea, the picture was worsening. Iran's Revolutionary Guards Navy said on Tuesday, according to Iranian media, that a supertanker caught fire after striking a sea mine south of the Strait of Hormuz. The Guards said the vessel was violating Iranian regulations. Shiptracker Kpler noted on Monday that at least 18 vessel attacks had been reported over two weeks.
LSEG analysts said the attacks have spread beyond Hormuz. In their note, Iran has been targeting vessels as far south as the Gulf of Oman, which threatens loadings outside the Arab Gulf as well as the ship-to-ship transfers that have helped support Middle East loadings as the conflict has dragged on.
On land, the Houthis claimed responsibility on Monday for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield, and Saudi Arabia's Riyadh and Abha airports. Separately, the death toll from a Houthi attack on Yemeni government forces on Monday rose to 73 as fighting intensified.
Diplomacy has produced no visible result yet. Iranian Foreign Minister Abbas Araqchi said in a television interview aired Tuesday that Iran has not received a response from Saudi Arabia or the Houthis to its offer to help broker peace talks.
In the United States, two Energy Department officials said on Tuesday they were working with refiners around the world to raise fuel output, as a diesel shortage has pushed prices up. A Reuters poll of eight analysts expected US crude stockpiles to have fallen by about 800,000 barrels in the week ended October 16, with product inventories also expected to have declined.
The next signals are official inventory data, any answer from Riyadh or the Houthis to Iran's mediation offer, and whether tanker attacks keep moving outward from Hormuz.
Bemerkenswerte Zitate
Iran has been targeting vessels as far south as the Gulf of Oman, threatening loadings outside of the Arab Gulf.— LSEG analysts
Iran has not received a response from Saudi Arabia or the Houthis to its offer to help broker peace talks.— Iranian Foreign Minister Abbas Araqchi
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