Oil rises on supply concerns as Houthis attack Saudi Arabia

Oil prices surged on Friday due to supply concerns following intensified attacks by Iran-aligned Houthis on Saudi Arabia, leading to a four-month streak of monthly gains and the steepest increase since July. Brent crude futures rose 86 cents, or 0.75%, to $115.74 a barrel at 0:22 GMT, while US West Texas Intermediate (WTI) crude futures increased by 72 cents, or 0.71%, to $102.72.

Brent crude futures are expected to finish the month nearly 14% higher, while WTI is on track for a 15% jump, marking their first closure above $100 since April. The Houthis claimed to have targeted several locations in Saudi Arabia, including the largest oil refinery, Ras Tanura, the Rabigh refinery, and an Aramco facility in Abqaiq. The Saudi-led coalition reported intercepting a cruise missile launched by the Houthis towards the kingdom's western region.

Saul Kavonic, MST Marquee Head of Energy Research, noted that ongoing military activity around the Strait of Hormuz and the absence of a viable diplomatic solution are contributing to elevated oil prices, anticipating potential escalation in the conflict in the coming weeks. US President Donald Trump mentioned that Vice President JD Vance had reached out to Iran to assist in delivering medical supplies, following reports that Vance had written to Tehran's top security official to revive peace talks.

However, Iran has not yet responded to the letter, according to the semi-official Tasnim news agency. Tehran desires the US to meet its conditions, emphasizing that any position deviating from this stance is unacceptable.

Additionally, Iran's Revolutionary Guards reported that three tankers encountered sea mines, exploded, and caught fire while attempting to utilize an unauthorized route south of the Strait of Hormuz. Amidst regional security concerns, ExxonMobil and Chevron decided to cancel travel plans for their executives to the UAE's largest oil exhibition next week, sources close to the matter told Reuters.