Brent crude hits five-month high amid Houthi attacks on Saudi sites and Gulf vessels

Oil prices rose sharply on Tuesday, with Brent crude reaching a five-month high of $111.05 per barrel due to escalating geopolitical tensions in the Middle East. The Iran-aligned Houthis claimed multiple attacks on Saudi infrastructure, including energy facilities and airports, while reports indicated at least 18 vessels had been attacked over two weeks in the Gulf region. These developments have increased concerns about regional stability and potential disruptions to oil supplies. Traders are factoring a significant risk premium into prices amid ongoing volatility. Analysts from ING noted that unless energy flows remain unaffected, this premium could gradually diminish; however, no such signs were evident yet. The attacks also resulted in casualties within Yemen itself, further highlighting the instability and its potential impact on global oil markets. In parallel, U.S. crude stockpiles are expected to have declined last week according to a preliminary Reuters poll, adding upward pressure on prices.

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