Houthi Attack Drives Up Oil Prices as Middle East Conflict Worsens

Oil prices rebounded on Wednesday after Yemen's Houthi rebels claimed to have attacked a Saudi oil tanker in the Red Sea, increasing concerns about the Middle East conflict and its impact on global energy supplies.

The attack, which was denied by Saudi officials, drove up Brent crude futures by $1.07, or 1.35%, to $80.43 a barrel, while US West Texas Intermediate futures gained 45 cents, or 0.59%, to $76.22.

The incident comes after Qatar said on Tuesday that mediators were making progress with efforts to end the war, which had previously driven down oil prices by 5% and sent Brent below $80 a barrel for the first time since July 13.

UBS analyst Giovanni Staunovo attributed the price increase to the reports of the attack, while Phillip Nova's Priyanka Sachdeva cautioned that the broader supply picture warrants caution.