Brent crude oil prices climbed above $114 a barrel on Friday, October 23, reaching their highest level in more than five months as escalating Houthi attacks in Saudi Arabia raised fears of further disruption to Middle East energy supplies. According to Reuters, Brent crude futures rose $1.30, or 1.2%, to $114.47 a barrel by mid-morning GMT, while U.S. West Texas Intermediate futures climbed to $100.84.
The Associated Press reported that the Houthis claimed responsibility for six attacks targeting oil facilities, airports and military sites across Saudi Arabia. Saudi Aramco on Thursday ordered the evacuation of its headquarters in Dhahran, near Bahrain, as fighting escalated between the world's largest crude exporter and the Yemen-based Houthis, according to Reuters.
The price surge is on track for a third consecutive weekly gain. According to the Associated Press, Brent jumped 4% on October 22 to $113.17 a barrel, after reaching its highest level in five months. Crude was below $97 a barrel at the start of the month, underscoring how quickly market sentiment has shifted in recent weeks.
Analysts told Reuters that markets are increasingly pricing in the risk of renewed escalation in the Persian Gulf, which could threaten oil flows that have so far remained resilient. ING analysts said the possibility of re-escalation alone is likely to keep a sizable geopolitical risk premium embedded in prices, even if tensions ease.
Adding to supply concerns, Reuters reported that a pipeline valve from Libya's Hamada and Tahara oilfields to Zawiya port has been shut, reducing production at both fields. With conflicts showing little sign of resolution, traders say elevated prices will likely persist until there is clarity on both the extent of any actual supply disruption and the time needed to restore normal operations.