Oil prices rebounded in Asian trading on Wednesday, snapping a two-day losing streak, as renewed attacks by Yemen's Houthi movement on Saudi Arabia raised concerns about regional stability. The attacks overshadowed recent diplomatic efforts aimed at easing tensions in the Middle East. As of 21:20 ET, December futures for Brent crude climbed 1.5% to $115.60 per barrel, while WTI crude rose 1.2% to $101.13 per barrel.
Prices had hit six-month highs last week but retreated in the previous two sessions as investors focused on diplomatic talks between Saudi Arabia, Turkey, Pakistan, and Iran. However, the Houthis targeted Saudi Arabia's largest oil refinery, Ras Tanura, with a ballistic missile, underscoring the ongoing risks to energy infrastructure. Earlier this week, they also struck pumping stations along Saudi Arabia's East-West oil pipeline and Riyadh's King Khalid International Airport.
The attacks have heightened worries about the security of alternative oil export routes, particularly as shipping through the Strait of Hormuz remains disrupted by the broader conflict involving Iran. Brent crude had surged above $117 a barrel last week following attacks on tankers near the Strait. Meanwhile, U.S. inventory data released on Tuesday showed a larger-than-expected drawdown in crude stocks, providing additional support to prices.
Investors are now awaiting official U.S. Energy Information Administration data later on Wednesday, as well as the Federal Reserve's policy decision. Higher oil prices could add to inflationary pressures, complicating the central bank's policy choices.