Oil rises as Middle East attacks increase uncertainty over flows

Oil prices climbed higher as a surge in attacks across the Middle East sowed doubt over the resumption of energy flows from the Persian Gulf. West Texas Intermediate (WTI) moved closer to $95 a barrel, after a slight uptick in the previous session, while Brent crude fell below $106. The United States reported assistance in the transport of over 19 million barrels of crude through the Strait of Hormuz, despite ongoing Iranian attacks on tankers in the waterway threatening the recent rise in Gulf supply nearing prewar levels.

Elsewhere, Saudi Arabia repelled more missiles and drones launched by Yemen’s Houthis, with fighting against the Iran-backed militant group showing no signs of abating. The Saudi Aramco headquarters in the east of the kingdom was among the latest targets. Brent has increased by more than 70% in 2026 as the conflict between the US and Iran unsettles energy markets.

The risks have escalated as Iran-backed Houthis attacked Riyadh’s main airport earlier in October and Saudi-backed forces launched an operation to regain rebel-held territory in Yemen. Tanker strikes in Hormuz have also led to more supertankers avoiding the Persian Gulf. "While the daily headlines fluctuate, the broader outlook in the Persian Gulf remains largely unchanged over the past three months," stated Pavel Molchanov, an analyst at Raymond James.

Tanker companies are becoming more skilled in transporting crude between vessels at sea to maintain exports, while minimizing exposure to Iranian attacks, Molchanov added.