Oil prices climbed sharply on Thursday after a series of attacks by Yemen’s Iran-aligned Houthis inside Saudi Arabia forced the United States to order some diplomats and their family members to leave American missions in the Kingdom.
Brent crude futures rose $1.29, or 1.2%, to $110.11 a barrel by 00:34 GMT, while US West Texas Intermediate crude gained 97 cents, or 1%, to $98.12. The previous day, Brent settled mostly unchanged and WTI had declined by 67 cents.
The US State Department announced plans to withdraw family members from several diplomatic posts in the region, Reuters reported, citing officials. The move follows a wave of Houthi attacks targeting critical infrastructure in Saudi Arabia.
On Wednesday, the Houthis struck a civilian airport in Dammam with missiles and drones, killing at least one person and injuring eight others. They also launched a drone attack on a Saudi oil field that killed two people.
At the same time, Iranian media reported unexplained explosions in Sirik, southern Iran, though the cause and origin remain unconfirmed.
Iran’s Foreign Minister Abbas Araqchi told the Financial Times on Wednesday that Tehran was fully prepared to defend itself. Iranian parliamentarian Masoud Pezeshkian told state media that the United States could not expect dialogue while maintaining blockades and threats against Iran.
Data from Kpler indicated that there have been at least 18 attacks on shipping in the last two weeks. Analysts from London Stock Exchange Group warned that Iran was targeting tankers far beyond the Strait of Hormuz, reaching into the Gulf of Oman and threatening Gulf crude loadings and ship-to-ship transfers essential to regional oil exports.
The tensions come amid broader geopolitical turmoil. Russian President Vladimir Putin met US Special Envoy Steve Witkoff in St Petersburg on Wednesday to discuss ending the war in Ukraine. The Kremlin confirmed that Putin agreed to resume US-mediated peace talks with Ukraine as early as next month. Ukrainian President Volodymyr Zelenskiy expressed support for the talks and urged a swift start.
Meanwhile, US crude inventories fell by 3.06 million barrels to 412.5 million barrels last week, according to the US Energy Information Administration (EIA) on Wednesday. This draw exceeded analyst expectations, which had forecast a decrease of 820,000 barrels.
Distillate stockpiles, including diesel and heating oil, rose by 1.68 million barrels to 104.3 million barrels, contrary to forecasts anticipating a 1.16 million-barrel decline.
The US Department of Energy announced that the Trump administration would offer loans from nearly a third of the 1-million-barrel emergency heating oil reserve. The move aims to contain prices that have surged amid diesel shortages caused by conflicts in Iran and Ukraine.
The recent surge in oil prices reflects a complex web of military actions and diplomatic maneuvers affecting energy supplies from the Gulf region. The Houthis’ attacks on Saudi Arabia and Iran’s statements underline the growing volatility in a strategically vital corridor for global oil exports.
According to Joy Online.
