Oil prices move higher after Yemen's Iran-backed Houthis claim Saudi tanker strike

Oil prices climbed on Wednesday following Yemen's Iran-backed Houthi militia's claim of attacking a Saudi Arabian tanker in the Red Sea. Brent crude, the global price indicator, was last recorded at $80.15 per barrel, marking a 1% rise, while U.S. West Texas Intermediate futures for September delivery increased by 0.28% to $75.98.

The Houthis stated their missile strike against the tanker occurred near Yanbu, a significant port for Saudi crude oil exports. This development sent shockwaves through markets, casting doubt on the prospects of a potential Middle East ceasefire deal. U.S. Central Command announced via X that the southern part of the Strait of Hormuz, located in Omani waters, remained "open and free" for commercial ships, following earlier remarks by U.S. Treasury Secretary Scott Bessent indicating a possible deal to open the waterway this week.

Oil prices ended around 6% lower on Tuesday due to optimism about the Strait's reopening. Oil prices had been gradually decreasing in recent days after U.S. President Donald Trump canceled a planned strike on Iran in favor of ongoing negotiations.