Yemen's Houthi militants say they struck a Saudi oil tanker near Yanbu on Tuesday, sending Brent and WTI crude higher and unsettling hopes for a Middle East ceasefire. The reported attack lands as the U.S., Iran and Oman edge toward a deal to reopen the Strait of Hormuz, even as tanker risk across the region stays elevated.
Houthi missile strike hits Saudi tanker near Yanbu
Yemen's Iran-backed Houthi militants said they struck a Saudi Arabian oil tanker with a missile off the coast of Yanbu, a major port for Saudi crude exports, and crude prices rebounded on Wednesday as a result. Brent crude rose more than 1.2% to $80.32 a barrel, while West Texas Intermediate futures for September delivery gained 0.67% to $76.28.
The reported strike, and the resulting rebound, rattled markets and appeared to sour hopes for a Middle East ceasefire deal that had built through the week. Saudi officials had not immediately confirmed the strike, Reuters reported.
Hormuz reopening talks remain unsettled
U.S. Central Command said in a post on X late Tuesday that the southern route of the Strait of Hormuz, through Omani territorial waters, was free and open to commercial vessels. That followed comments from Treasury Secretary Scott Bessent, who told CNBC a deal to unlock the waterway could be reached this week — a vital transit route for oil, gas, fertilizer and other industrial products.
Separately, the U.S., Iran and Oman are nearing an interim agreement to reopen the Strait, with Washington aiming to announce it Wednesday, Axios reported Tuesday evening. Iranian media, however, said the reopening would be delayed for as long as U.S. threats continue.
Oil had ended about 6% lower on Tuesday on those reopening hopes. Both benchmarks had tumbled more than 5% in the prior session, extending sharp losses from Monday, before Wednesday's Houthi-driven rebound. As a result, Brent futures were up 0.9% at $80.05 a barrel and WTI added 0.3% to $76.00 as of 05:17 a.m. Eastern time.
Tanker risk stays elevated despite diplomacy
Shipping traffic through the Strait of Hormuz and the Bab el-Mandeb, the channel linking the Red Sea to the Gulf of Aden, held steady versus the prior day, ship-tracking data cited by Reuters showed, though flows remain far below levels seen before the outbreak of the Iran war in late February. Risk for tankers in the region therefore stays elevated, and another commercial vessel came under attack near the Strait of Hormuz on Tuesday.
Meanwhile, the American Petroleum Institute said crude inventories rose 2.69 million barrels in the week ended July 31, compared with analysts' expectations for a draw of about 2 million barrels. Official U.S. Energy Information Administration data confirming the trend was due later Wednesday.
Sources: CNBC, Investing.com
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