Middle East Tensions Spark Oil Price Rebound
Oil prices rebounded on Wednesday after a missile attack on a Saudi oil tanker in the Red Sea revived concerns about Middle East tensions. The Houthi movement, backed by Iran, claimed responsibility for the strike near Yanbu, a major export hub.
The attack sent Brent crude futures above $80 a barrel and West Texas Intermediate (WTI) futures above $76 a barrel, reversing part of Tuesday's losses. The Red Sea and nearby Strait of Hormuz handle a significant share of global crude oil exports, making shipping security a key concern for energy traders.
US officials sought to reassure markets, with the US Central Command saying the southern shipping route through the Strait of Hormuz remained open for commercial traffic. However, diplomatic efforts aimed at ensuring uninterrupted navigation have yet to produce a lasting agreement.