SINGAPORE: Oil prices rose Friday as fresh Houthi attacks on Saudi Arabia and uncertainty over U.S.-Iran negotiations heightened fears of supply disruptions, putting Brent and U.S. crude on track for a fourth consecutive monthly gain.
Brent crude futures rose 86 cents, or 0.75%, to $115.74 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 72 cents, or 0.71%, to $102.72 as of 0122 GMT.
Brent was on course to end October nearly 14% higher, while WTI was set for a gain of about 15%. The U.S. benchmark was also heading for its first monthly close above $100 a barrel since April.
The latest price gains came after Yemen’s Iran-aligned Houthis claimed Thursday that they had attacked several locations in Saudi Arabia, including the Ras Tanura and Rabigh refineries and an Aramco facility in Abqaiq. Separately, a Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis toward the kingdom’s western region.
Concerns over the conflict have been compounded by uncertainty surrounding diplomatic efforts between Washington and Tehran. U.S. President Donald Trump said Thursday that Vice President JD Vance had contacted Iran over the provision of medical supplies. The remarks followed media reports that Vance had sent a letter to a senior Iranian security official in an effort to revive peace talks.
Iran has received the letter but has not yet responded, the semi-official Tasnim news agency reported. Tehran said it wanted Washington to meet its conditions and warned that any position outside its proposed framework would be unacceptable.
Meanwhile, Iran’s Revolutionary Guards claimed that three tankers had struck sea mines, exploded and caught fire while attempting to use what they described as an unauthorized route south of the Strait of Hormuz. The claim has not been independently verified.
“Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks,” said Saul Kavonic, head of energy research at MST Marquee.
The security situation has also affected plans within the energy industry. ExxonMobil and Chevron have canceled plans to send executives to the United Arab Emirates’ largest oil show next week, two sources familiar with the matter told Reuters.
The Strait of Hormuz is one of the world’s most important energy shipping routes. Any disruption to traffic through the waterway could threaten global oil supplies and add further pressure to prices.
