Oil prices rise as Houthis attack Saudi Arabia, Hormuz talks delayed

Oil prices surged on Tuesday, reflecting heightened fears of supply disruptions in the Middle East due to fresh Houthi attacks on Saudi Arabia and delayed talks between Iran and Gulf nations on reviving the Strait of Hormuz. Brent Oil Futures climbed 0.9% to $106.64 a barrel, while West Texas Intermediate crude futures increased 0.9% to $102.34 a barrel.

Yemen's Iran-aligned Houthis carried out additional assaults on Saudi Arabia on Monday, targeting key areas along the Red Sea and the Bab al-Mandab strait, potentially impacting oil exports from the region. The Houthi offensive has the potential to disrupt up to 4% to 5% of global supplies. Oman postponed a meeting between Iran and Gulf states on Monday, to discuss reopening the Strait of Hormuz, but did not specify a new date.

Attempts to pass through the Hormuz strait continued to fall short of pre-war levels, indicating little progress in enhancing global crude supplies. Iran denounced a U.S. Central Command statement claiming a Panamanian-flagged oil tanker had been hit by sea mines, while U.S. President Donald Trump reiterated his assertion that Iran was seeking a peace agreement.

Tehran disagreed with Trump, asserting that no negotiations would occur until Iran's demands were satisfied. The Strait of Hormuz remained a focal point of the conflict, given that it previously supplied nearly a fifth of the world's oil before the U.S.-Iran war.