Oil prices jumped on Thursday after Houthi-claimed attacks on Saudi energy sites and reports of tanker explosions in the Strait of Hormuz. Prices reversed earlier losses, though both benchmarks were still on track for a weekly decline.
Oil prices jumped over $2 a barrel on Thursday after attacks on Saudi energy infrastructure escalated and shipping disruptions through the Strait of Hormuz threatened global supplies.
Brent futures were up $2.44, or 2.63%, at $95.2 at 1:49 p.m. ET. US West Texas Intermediate crude was up $1.66, or 1.92%, at $88.19. Still, both benchmarks were on track to end the week about 3% lower.
Houthis and Iran escalate attacks
Yemen's Iran-aligned Houthis said they had attacked a pumping station on Saudi Arabia's East-West oil pipeline and an oil facility in Yanbu on its Red Sea coast. The group also claimed an attack on a Saudi Aramco building in Riyadh, with no immediate Saudi confirmation.
In the Gulf, Iran's military said four oil tankers were hit by explosions in the Strait of Hormuz after ignoring warnings. Reuters could not immediately verify the Iranian accounts. The strait carried nearly one-fifth of the world's crude oil before the US-Israeli conflict with Iran.
Trump's Iran post and OPEC+ output data pressure prices
Oil had traded lower at the start of the session after US President Donald Trump posted on social media that Washington did not need a deal with Iran. OPEC+ data showing crude production rose in October, driven by higher Saudi Arabian output, also weighed on prices.
Meanwhile, Ukraine peace talks between Russian President Vladimir Putin and US negotiators Steve Witkoff and Jared Kushner began in the Kremlin. Separately, the Energy Information Administration said US crude, gasoline and distillate inventories rose last week.
Ukraine also said its drones hit the port area of Ust-Luga in Russia's northwest, triggering a fire and damaging part of its network of fuel tanks. Timothy Snyder of Matador Economics said exchanges between Russia and Ukraine and attacks on shipping are beginning to add price pressure. He added: "It is beginning to look like investors are growing weary".
Source: Reuters via Investing.com
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