Oil prices climbed on Wednesday morning, albeit retreating from earlier highs, as investors reacted to the International Energy Agency's latest report. The IEA's October Oil Market Report cautioned that diesel market constraints could persist into 2027, while recent attacks on Saudi Arabia's oil infrastructure risked disrupting supply recovery. Brent crude oil futures rose 0.7% to $106.46 per barrel, and U.S. West Texas Intermediate crude futures gained 1.2% to $95.30 per barrel by 6:20 a.m. ET.
The Saudi Ministry of Energy reported that an administrative building belonging to Saudi Aramco was attacked overnight in Dhahran, though no injuries were reported. The attack follows a series of Houthi strikes on Riyadh, including a fatal hit on the city's international airport. Meanwhile, a Saudi-led coalition struck Houthi energy terminals and fuel reserves in Yemen, with precautions taken to avoid civilian casualties.
Tensions between the U.S. and Iran also escalated, with U.S. Central Command dismissing claims by Iran's Islamic Revolutionary Guard Corps Navy that the Strait of Hormuz is under Iranian control. Hedge fund manager Paul Tudor Jones told CNBC that oil prices could surge another $20-$25 due to the Iran conflict, stating he is 'long oil... bullish oil.' He suggested that any resolution would have likely occurred before the midterms.