Oil rises on Middle East supply worries

Oil prices climbed on Wednesday amid Middle East supply uncertainties, as traders braced for potential threats to oil infrastructure and shipping risks in the Red Sea. Brent crude futures climbed 85 cents, or 0.78%, to $109.64 per barrel, while US West Texas Intermediate (WTI) crude rose 76 cents, or 0.78%, to $98.58 per barrel.

Iran's Revolutionary Guards Navy reported a supertanker caught fire after colliding with a sea mine off the Strait of Hormuz, with at least 18 tankers attacked in two weeks, according to shiptracker Kpler. Attacks extended further south into the Gulf of Oman, threatening Middle East loadings and ship-to-ship transfers. The Houthis claimed responsibility for attacks on Saudi Aramco facilities, the Shaybah oilfield, and Saudi airports.

Yemen's death toll from Houthi attacks rose to 73 as clashes intensified. Brent crude futures fell 76 cents, or 0.69%, to $108.79 after touching a five-month high of $111.99 the previous session. Iranian Foreign Minister Abbas Araqchi stated Iran has not received a response from Saudi Arabia or Yemen's Houthis to its peace talks proposal.

US officials said they were collaborating with refiners worldwide to increase fuel production, as a diesel shortage has driven prices up. Recent crude oil stockpiles in the US were projected to have declined, along with product inventories, based on a Reuters survey. Analysts estimated an average drop of about 800,000 barrels in crude inventories during the week ending October 16.