Oil prices settle up about 3% as Houthi attack on Saudi Arabia lifts supply fears

Oil prices climbed around 3% to a one-week high on Thursday after a Houthi missile attack on Saudi Arabia reignited concerns over potential supply disruptions. Brent futures rose 3.4% to settle at $106.60 a barrel, while US West Texas Intermediate crude increased 2.7% to $94.61. However, prices retreated from their session peaks after reports emerged of discussions between the US and Iran regarding the reopening of the Strait of Hormuz, a critical oil supply route.

The attacks prompted Saudi Arabia to intercept six ballistic missiles, protecting the southern province of Taif and the Red Sea area of Yanbu. Meanwhile, the US has extended financial sanctions targeting companies that do business with Iranian firms, while Iran has threatened retaliation against neighboring countries complying with the US ban.

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