Oil prices rose on Wednesday after attacks on Saudi Arabia’s oil industry and ships near the Strait of Hormuz raised concerns about global oil supplies. The increase came after an attack on the headquarters of Saudi state-owned oil company Saudi Aramco and reports of ships being hit in waters near the important shipping route.
However, he added that oil exports had continued so far, Reuters reported. Iran’s reported actions have raised questions about efforts to control oil prices. Trump announced the agreement last Friday.
US crude oil prices also increased sharply. Military strikes involving Saudi Arabia and the Houthis are also supporting oil prices. The officials did not provide further details about the new strategy. The Iran-allied Houthi group attacked an administrative building belonging to Saudi Aramco in Dhahran, Saudi Arabia. The US administration temporarily eased sanctions on Russian fuel. The move was intended to allow more Russian fuel into global markets, even though the sanctions had been imposed to limit Moscow’s revenue for its war in Ukraine.
Brent crude prices climbed to $106.60 per barrel. Brent crude futures rose by 91 cents, or 0.9%, to $106.60 per barrel at 1110 GMT on Wednesday. West Texas Intermediate (WTI), the US oil benchmark, rose by $1.65, or 1.8%, to $95.79 per barrel. One Iranian official told Reuters that Iran began using different offensive methods about 10 days ago.
This was its highest level in more than two weeks, according to Reuters. Market participants are worried that the fighting could reduce oil exports from the region, said Giovanni Staunovo, an analyst at UBS. Iranian officials said the country had started using new tactics to target ships. Priyanka Sachdeva, head of market insights at Phillip Nova, said Iran’s open admission of actions that could undermine US efforts to control oil prices showed its intentions behind the so-called peace talks. US President Donald Trump said Russia had agreed to supply diesel to global markets.
The attack caused a limited fire, according to Saudi Arabia’s energy ministry on Wednesday.
The Houthis have launched missiles and drones at Saudi Arabia over the past week. The attacks are retaliation for Saudi Arabia’s support for Yemeni government forces. Saudi Arabia’s international airport has reportedly been hit four times. A container ship sank after hitting a naval mine in waters south of the Strait of Hormuz.
One of the strikes, which took place on Saturday, killed 13 people, according to the Reuters report. The vessel caught fire after striking the mine, according to a statement from Iran’s Revolutionary Guards Navy shared by Iranian state media on Wednesday.
