Oil Prices Rise as Houthi Attack Sparks Supply Concerns
Oil prices rose on Thursday following reports of a Houthi attack on Saudi deployments in Yemen, which increased concerns about Red Sea shipping. Brent crude futures gained $1.74, or 2.19%, to $81.19 a barrel by 10:59 a.m. EDT (1459 GMT), while U.S. West Texas Intermediate futures rose $1.40, or 1.86%, to $76.62.
The Houthi attacks targeted Saudi deployments in Marib and Hadramout in Yemen, killing or wounding hundreds of Saudi-aligned fighters and destroying military camps, weapons depots, and vehicles, according to the Houthis. The market reaction was mixed, with some analysts expecting sustained supply risks due to tensions in the region.
Iran and Oman have reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, which has helped cap gains. However, traders remain focused on U.S.-Iran agreements, and any delays may lead to prices fading back to the upside.