Oil prices climbed on Wednesday as concerns over Middle East supply disruptions intensified. Traders remained cautious about potential risks to Red Sea shipping routes and threats to Saudi Arabia's oil infrastructure. Brent crude futures gained 85 cents, or 0.78%, reaching $109.64 per barrel, while US West Texas Intermediate (WTI) crude rose 76 cents, or 0.78%, to $98.58 per barrel.
A supertanker caught fire after hitting a sea mine near the Strait of Hormuz, according to Iran's Revolutionary Guards Navy. Over the past two weeks, at least 18 vessel attacks were reported, extending beyond the Strait of Hormuz into the Gulf of Oman. Analysts noted that Iran has been targeting vessels further south, impacting oil loadings and ship-to-ship transfers.
The Houthis claimed responsibility for attacks on a Saudi Aramco site in Yanbu, the Shaybah oilfield, and Saudi airports in Riyadh and Abha. Meanwhile, the death toll from a Houthi attack on Yemeni government forces rose to 73 as fighting escalated. Prices had dipped in the previous session after Iran's president discussed mediation efforts with Pakistan's army chief.
On Tuesday, Brent crude futures settled down 76 cents, or 0.69%, at $108.79, after hitting a five-month high of $111.99. The November contract for US WTI crude expired down $1.87, or 1.8%, at $101.79. Iranian Foreign Minister Abbas Araqchi stated that Iran had not received a response to its peace talk offer from Saudi Arabia or the Houthis.
In the US, Energy Department officials are working with global refiners to boost fuel output amid a diesel shortage. A Reuters poll suggested that US crude oil stockpiles likely fell by about 800,000 barrels in the week ended October 16.