Houthi Attack Sends Oil Prices Soaring to $80.43
Oil prices surged on Wednesday after Yemen's Iran-aligned Houthi rebels claimed to have attacked a Saudi oil tanker in the Red Sea, raising concerns over the escalation of tensions in the Middle East.
The attack reportedly targeted a key port for Saudi crude oil exports, driving up Brent crude futures by 1.35% to $80.43 a barrel and US West Texas Intermediate (WTI) futures by 0.59% to $76.22.
UBS analyst Giovanni Staunovo attributed the price increase to the attack, which dented investor hopes of a de-escalation in the conflict following Qatar's statement on Tuesday that mediators were making progress towards ending the war.
Tehran, however, denied any ongoing peace talks, contradicting US President Donald Trump's assertions. Analysts at IG noted that the main sticking point remains Iran's insistence on control over the Strait of Hormuz and the US refusal to accept this outcome.