Brent crude oil prices climbed on Tuesday, reaching a five-month high as traders reacted to escalating tensions in the Middle East. The rise came amid reports of Houthi attacks on key Saudi infrastructure, including energy sites, airports, and military targets. Yemen's Iran-aligned Houthis claimed responsibility for the strikes, which targeted an Aramco site in Yanbu, the Shaybah oilfield, and airports in Riyadh and Abha.
The market priced in a geopolitical risk premium following the attacks, which also included reports of vessel attacks in the Gulf. This heightened uncertainty pushed oil prices higher, reflecting concerns over potential disruptions to supply.
The situation underscores the delicate balance of global energy markets, where geopolitical instability can quickly translate into price volatility. Traders are closely monitoring developments in the region for further indications of how the conflict may evolve and impact oil supplies.