Brent crude climbed to a five-month high on Tuesday, touching $111.05 per barrel and later trading around $111.46 to $111.75 as renewed Houthi attacks on Saudi Arabia and reported strikes on vessels in the Gulf amplified supply fears. U.S. West Texas Intermediate reached $104.94, its highest since September, and was last up about 1.1% at $104.80.
Yemen's Iran-aligned Houthis said on Monday they launched several attacks on Saudi energy, airport and military targets, including an Aramco site in Yanbu and the Shaybah oilfield. The group also claimed strikes on King Khalid International Airport in Riyadh and Abha airport. Saudi authorities did not immediately confirm those claims, and Reuters could not independently verify the Houthi statements. Saudi Arabia is aligned with Yemen's internationally recognized government forces, which began an offensive earlier this month to retake Houthi-controlled territory.
The renewed attacks have raised fears about regional stability and kept oil prices above $100 a barrel. Saudi Aramco shares fell about 1% on Tuesday. A Houthi attack on a training camp in Shabwa province killed 58 people and injured more than 200 on Monday.
On the shipping front, Kpler said at least 18 vessels were reportedly attacked over two weeks, keeping the risk premium in oil prices intact. Iran's Islamic Revolutionary Guard Corps claimed an oil tanker hit a naval mine and caught fire in the Strait of Hormuz, though the claim could not be independently verified. Hormuz has been largely shut since a joint U.S.-Israeli assault on Iran began in late February. U.S. Energy Secretary Chris Wright said Gulf crude flows had recovered to about 80% of pre-war levels, but refined-product shipments remained constrained.
ANZ analysts warned that the rebound is under threat, with preliminary data pointing to another slowdown due to attacks on ships in the Gulf. ING analysts said the risk premium would likely fade slowly if flows continue uninhibited, but added there were no signs of that yet. Brent dipped on Monday on reports that the U.S. and Iran may have reached a breakthrough in mediated talks, but Deutsche Bank analysts said the drop was short-lived after Iran's First Vice President said the country had 'no choice but to exercise sovereignty' over the strait.
