Brent Nears $100 After Iran and Houthi Attacks
Oil Prices Rise for Fourth Straight Session
Oil prices climbed for a fourth consecutive session on Wednesday as renewed attacks across the Gulf heightened concerns over potential disruptions to global energy supplies.
Brent crude futures rose 1.4% to $99.33 a barrel in early trading, moving closer to the key $100 psychological threshold. US West Texas Intermediate (WTI) also gained 1.4% to $94.34 a barrel.
Oil prices have risen by roughly a quarter since early August as hopes for a lasting ceasefire have weakened and the six-month-old conflict has once again expanded across the region.
Iran Attacks Disrupt Fujairah Oil Loadings
Iran renewed attacks on the United Arab Emirates, disrupting oil loadings at Fujairah following a third strike in four days.
Fujairah is a major regional storage and bunkering hub located outside the Strait of Hormuz. Any sustained disruption at the port could quickly intensify concerns about the availability of crude and refined products in international markets.
Traders are closely monitoring whether loading restrictions continue and whether additional tankers remain off the water.
Houthi Strikes Add to Saudi Energy Risks
The latest escalation has also increased pressure on Saudi Arabia after Iranian-backed Houthis in Yemen struck several Saudi cities, potentially drawing the key US ally deeper into the conflict.
US forces have reportedly targeted multiple Iranian oil tankers, while Iran has targeted a US base in Jordan. The widening confrontation has raised fears that additional energy infrastructure and shipping routes could become exposed.
Saudi Arabia has already diverted some exports away from the Strait of Hormuz, providing an alternative route for part of its shipments. However, sustained attacks on Saudi energy facilities could make that workaround increasingly difficult to maintain.
Oil Market Risk Premium Continues to Build
Analysts at ING said the latest developments suggest peace talks remain distant, meaning markets are likely to continue pricing a substantial geopolitical risk premium into crude.
OCBC analysts similarly warned that attacks on Saudi energy infrastructure and the disruption or loss of Iranian tankers could increase the possibility of another prolonged supply shock.
Shipping lanes and regional energy plants were already under pressure before this week’s escalation. Further disruptions could therefore have a wider impact on supply expectations and transportation costs.
Brent’s $100 Threshold Comes Into Focus
With Brent approaching $100 a barrel, traders are now watching whether prices can break above the psychological level.
A sustained move above $100 could signal that markets are assigning a significantly higher probability to prolonged supply disruptions. Some financial institutions have already warned that crude could spike further if attacks on shipping intensify.
For now, the market reaction remains heavily driven by geopolitical risk. Each new strike is effectively adding another layer of uncertainty and insurance premium to global oil prices.