Iraq’s PM tells Saudi crown prince Iraqi territory will not be used for attacks

Oil prices experienced significant volatility on Wednesday, as naval vessels in the Strait of Hormuz came under attack and renewed clashes between Saudi Arabia and Yemen's Houthis intensified concerns over Middle East supply disruptions. Brent oil futures fell 0.2% to $105.50 per barrel by 09:11 ET (13:11 GMT), slipping from previous gains. In contrast, U.S. West Texas Intermediate crude futures increased by 1.4% to $95.43 per barrel.

The Strait of Hormuz has been facing shipping restrictions after multiple ships were reportedly hit by missiles while navigating the waterway. The United Kingdom Maritime Trade Operations authority reported that at least two vessels were targeted in Hormuz on Tuesday. Iran has largely closed the Strait of Hormuz since late February, following a joint U.S.-Israeli assault, which has cut off a shipping channel that previously accounted for roughly one-fifth of the world's oil and liquefied natural gas, according to Reuters.

Iran is reportedly preparing additional tactics to challenge vessels in Hormuz as part of an effort to maintain elevated oil prices before the U.S. midterm elections in November. Polls suggest that candidates from President Donald Trump's Republican Party may face voter backlash against recent energy shocks caused by the Iran conflict.

An increase in oil prices in September is expected to lead to a strong performance for the month's U.S. consumer price index, which is scheduled to be released later today, according to analysts at Deutsche Bank.

Worries have grown that the Middle Eastern conflict is expanding beyond Iran, further impeding Gulf oil supplies. Yemen's Iran-backed Houthis launched a series of missile strikes against Saudi Arabia on Tuesday, targeting significant cities and Saudi Aramco facilities, including the company's headquarters in Dhahran. Saudi authorities briefly suspended operations at Riyadh's international airport following the recent attacks.

In Yemen, Saudi-led coalition forces have launched a new offensive to reclaim Houthi-controlled territories, including areas controlling the Bab el-Mandeb Strait, a crucial oil shipping bottleneck. Meanwhile, investors are closely monitoring oil production in the U.S. Gulf Coast after a hurricane caused over 60% of production to be taken offline.