Brent Oil Nears $107 as Houthi Strikes on Saudi Arabia Fuel Supply Fears
Uncertainty surrounding US President Donald Trump’s claim of an “energy ceasefire” between Russia and Ukraine also unsettled markets, following his surprise announcement of an agreement to purchase Russian diesel.
ERBIL (Kurdistan24) – Brent crude oil prices approached $107 a barrel on Monday after Yemen’s Iran-backed Houthi movement launched strikes on Saudi Arabia, heightening concerns over global energy supplies ahead of the Northern Hemisphere winter.
Uncertainty surrounding US President Donald Trump’s claim of an “energy ceasefire” between Russia and Ukraine also unsettled markets, following his surprise announcement of an agreement to purchase Russian diesel.
Asian stock markets closed mixed, while major European indices rose in afternoon trading. European automakers gained after a deal to limit Chinese hybrid vehicle imports as part of efforts to prevent a wider trade war.
On Wall Street, major indices opened mixed, with the tech-heavy Nasdaq Composite falling after reaching record highs last week.
The US dollar strengthened against most major currencies ahead of key inflation data due this week. Investors are monitoring the figures for indications of whether the Federal Reserve could raise interest rates again to curb persistently high inflation.
“Oil remains well bid above $100 after strikes on Saudi Arabia's Riyadh airport over the weekend, whilst efforts to secure a Russia-Ukraine energy truce were muddy,” Neil Wilson, a strategist at Saxo UK, said.
He added that a US deal to purchase Russian diesel was “a drop in the ocean.”
Russia on Monday declined to confirm whether an agreement had been reached with Ukraine to halt attacks on energy infrastructure, a day after Trump announced an “energy ceasefire” without providing clarity on the arrangement.
Trump also called on Ukraine to “get a new leader” after Ukrainian President Volodymyr Zelensky criticized Washington’s decision to ease sanctions on Russian diesel.
The US president is facing mounting pressure over elevated fuel prices ahead of midterm elections in the world’s largest economy.
Meanwhile, Saudi Arabia’s energy minister acknowledged that the kingdom’s infrastructure and resilience had been tested by a wave of deadly attacks launched by Yemen’s Houthis.
The weekend strikes marked a sharp escalation in the Yemen conflict, in which Saudi Arabia has long supported the internationally recognized government.
The attacks have added to concerns over potential disruptions to regional energy infrastructure and global oil supplies at a time when markets are already facing heightened uncertainty.