Oil prices rise as Gulf attacks threaten supply recovery

Oil prices climbed as Middle East attacks threatened to halt a recovery in crude supplies, pushing West Texas Intermediate (WTI) crude toward US$95 a barrel and Brent crude below US$106. The United States reported assisting over 19 million barrels of crude through the Persian Gulf, but security concerns caused some supertankers to avoid the route.

Saudi Arabia intercepted further missiles and drones from Yemen’s Houthi rebels, while Saudi Aramco’s headquarters in the east was hit in recent assaults. Brent crude has surged more than 70% this year due to the US-Iran conflict disrupting energy markets. Analysts noted tanker operators are more skilled at transferring crude at sea, but the broader Gulf situation has remained largely unchanged for three months.

The US dollar eased slightly against the Japanese yen, with traders scaling back expectations of another US rate hike this month, now at roughly 19%. The probability of a 25-basis-point increase in December stands at nearly 72%. For Malaysia, ongoing oil price volatility and a weaker ringgit could complicate fuel costs and inflation forecasts, especially if geopolitical tensions persist and drive up the price of imported goods.