Crude oil prices climbed higher in early Asian trading on Monday, October 12, driven by ongoing attacks in West Asia and rising tensions in key shipping routes. Brent crude December contracts held above $105 per barrel, while West Texas Intermediate traded around $92 per barrel. The conflict escalated as the Houthis attacked King Khaled International Airport in Riyadh, resulting in 12 fatalities. Meanwhile, a drone struck a tanker near Oman's coast outside the Strait of Hormuz, injuring 12 Indian sailors on a UAE-owned vessel.
According to the International Maritime Organization, the Strait of Hormuz saw 11 tanker attacks in the week ending October 4, marking the highest weekly toll since the war began in late February. The latest attack occurred on Monday, highlighting the increased maritime risks in the region. An IRGC official warned that Iran would block all "illicit routes" through the Strait, as reported by the Fars news agency.
Despite US President Donald Trump's announcement of an "energy ceasefire" between Russia and Ukraine, oil prices continued to rise. Trump also claimed a deal with Russia for diesel supplies, though this has faced bipartisan criticism due to Congress's ban on Russian energy imports since 2022. Michelle Wiese Bockmann, a senior maritime intelligence analyst at Windward, noted that while volumes are moving, the region remains under "extremely high maritime risk."