Houthi Attack Sends Oil Prices Rebounding Above $80
Oil prices rebounded on Wednesday after Yemen's Iran-aligned Houthi rebels claimed they had launched a missile attack on a Saudi oil tanker in the Red Sea.
The incident drove Brent crude futures up $1.51, or 1.9%, to $80.87 a barrel by 11:23 GMT. U.S. West Texas Intermediate futures also gained 90 cents, or 1.19%, to $76.67.
The Houthi rebels' attack on the Saudi oil tanker near the Yanbu export port dented investor hopes of a de-escalation in the Middle East conflict. This had led to a 5% drop in Brent crude futures on Tuesday, with prices closing below $80 a barrel for the first time since July 13.
Priyanka Sachdeva, head of market insights at Phillip Nova, noted that while the immediate geopolitical premium has unwound, the broader supply picture warrants caution. The Strait of Hormuz, which connects the Middle East to global markets, remains a key concern due to its strategic importance and Iran's potential control over the waterway.