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Oil prices rose on Tuesday as renewed attacks across the Gulf region raised concerns about energy supply and kept a geopolitical risk premium in crude markets. Brent crude traded near a five-month high above USD 110 a barrel, while traders assessed Houthi claims of strikes against Saudi infrastructure and reports of attacks on commercial vessels.
Brent futures gained 55 cents, or 0.50%, to USD 110.10 a barrel by 0319 GMT. The benchmark reached USD 110.70 on Monday, its highest level since May 20. US West Texas Intermediate crude also advanced, though the two active contracts traded at different prices.
Yemen's Iran-aligned Houthis said Monday that they had launched attacks on Saudi energy facilities, airports and military targets. Their list included an Aramco site in Yanbu and the Shaybah oilfield.
The group also named King Khalid International Airport in Riyadh and Abha airport among its targets. Saudi authorities did not immediately confirm the claims, and independent verification was unavailable. The reports did not include a confirmed account of damage at those locations.
Meanwhile, a Houthi attack on a training camp for government security forces in Yemen's Shabwa province killed 58 people. More than 200 others suffered injuries, according to the report.
The violence increased concern about regional stability and the security of energy infrastructure. For oil traders, the immediate issue remained the possibility of disruptions to production, transport or shipping.
Shipping data provider Kpler said Monday that reports identified attacks on at least 18 vessels over two weeks. Those incidents kept attention on the safety of maritime traffic in the region. The reported incidents involved ships operating during a period of rising tension across regional energy routes.
ING analysts said oil prices continued to reflect a substantial risk premium because conditions remained volatile. They added that uninterrupted oil flows could gradually reduce that premium, although they saw no signs of such a shift. Their assessment linked future price moves to whether oil continued moving through the region.
Can oil shipments continue without disruption as attacks spread across the region? The answer matters for traders assessing whether current prices reflect a lasting supply threat or a temporary rise in risk.
In US trading, the November WTI contract increased 0.24% to USD 103.91 ahead of its Tuesday expiry. The more active December contract climbed 39 cents, or 0.40%, to USD 98.93.
The gap between those contracts showed that near-term and later deliveries carried different prices. Separately, a preliminary poll on Monday projected declines in US crude and refined product inventories for the previous week. The poll did not specify the size of the expected declines.
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Alongside the Gulf tensions, traders assessed changes to US restrictions involving Russian energy. President Donald Trump issued an executive order Friday waiving key Russia-related sanctions and tariffs, including penalties tied to energy purchases. The policy raised questions about future Russian energy trade.
However, on Saturday, Trump said that he had not announced a final decision on the matter. Secretary of State Marco Rubio also said officials wanted more time to evaluate the situation.
Russia's crude production rose by 65,000 barrels per day in September, reaching 8.43 million barrels per day, according to the International Energy Agency. Despite the monthly increase, output remained roughly 870,000 barrels per day below its level a year earlier.
KCM Trade chief analyst Tim Waterer said additional Russian diesel supplies might offer some relief. Still, he said traders remained more concerned about the risk of further damage to Gulf energy infrastructure.
Oil prices rose as Houthi claims against Saudi infrastructure and reported vessel attacks increased concern over Gulf energy supply. Brent crude held near a five-month high, while traders tracked US inventory expectations and uncertainty over Russian sanctions. Continued shipping flows remain central to whether the risk premium eases.
