Brent oil back above $80 after Houthi attack on Saudi tanker

Oil prices surged on Wednesday as Brent crude surpassed the $80 mark following an attack on a Saudi tanker by Houthi rebels in the Red Sea. The incident reignited concerns over Middle East supply risks, despite discussions of potential US-Iran negotiations. Brent, which represents two-thirds of the world's oil, rose 1.49% to $80.54 a barrel at 5:12pm UAE time.

West Texas Intermediate, a gauge for US crude, climbed nearly 1% to $76.46 per barrel. Two days earlier, prices had dropped by over 5% due to conflicting reports on US-Iran peace talks. Brent had initially fallen below $80, touching $77 before rebounding to its current level. US President Donald Trump announced on Monday that the US was beginning talks with Tehran, though Iran denied the claim, stating that its discussions were limited to Oman regarding the Strait of Hormuz.

The Houthi attack involved several ballistic missiles on the Saudi tanker Wafa, located in the northern Red Sea near Yanbu. Saudi authorities have not issued a statement on the matter. Meanwhile, the Strait of Hormuz, a critical chokepoint for Middle East oil exports, remains tense. Two Pakistani-flagged crude tankers safely passed through the Bab Al Mandeb strait, despite Houthi threats to attack ships linked to Saudi Arabia.

Analysts caution that any escalation could lead to a genuine supply shock, while a diplomatic resolution could quickly alter the market dynamics. Opec+ recently decided to increase oil output for the sixth month in a row in September, with the group pledging to continue monitoring the situation and acting accordingly.