Oil prices surged on Wednesday, October 14, as escalating tensions in West Asia raised concerns about disruptions to energy supplies. Brent crude climbed above $106 a barrel, recovering from a 0.9% drop the previous day, while the US West Texas Intermediate (WTI) approached $95.
Iran's intensified attacks on tankers in the Strait of Hormuz have threatened to disrupt Gulf supply flows. The US claims to have facilitated the transport of over 19 million barrels of crude through the waterway, but the strikes have caused supertankers to avoid the region.
Meanwhile, Saudi Arabia intercepted more missiles and drones launched by Yemen's Houthis, an Iran-backed group showing no signs of halting its campaign. A Houthi missile struck Saudi Aramco's executive headquarters in Dhahran, causing a limited fire but no injuries. The Saudi-led coalition reported attacks on several Saudi cities, including Riyadh.
Oil infrastructure has also been targeted, with a refinery in Jazan remaining closed since an earlier attack and a major Red Sea export port under fire. Saudi output is slowly recovering, with production rising by a third last month from its lowest level in over three decades, though it remains below prewar levels.
Brent crude has surged over 70% this year amid the US-Iran conflict. Risks escalated further after the Houthis struck Riyadh's main airport and Saudi-backed forces launched an offensive in Yemen. Additionally, US President Donald Trump defended a diesel export deal with Russia, despite criticism from Republican senators who called it a 'gift to our adversary.'