Oil Prices Hit Highest Level in More Than Five Months
Brent crude futures gained 79 cents, or 0.7%, to $113.96 per barrel by 0810 GMT, after earlier climbing to $114.72, the highest level since May 4. US West Texas Intermediate (WTI) crude rose $1.10, or 1.1%, to $100.57 per barrel.
ERBIL (Kurdistan24) – Oil prices rose on Friday, with Brent crude reaching its highest level in more than five months, as Houthi attacks in Saudi Arabia heightened concerns over further disruptions to Middle Eastern energy supplies.
Brent crude futures gained 79 cents, or 0.7%, to $113.96 per barrel by 0810 GMT, after earlier climbing to $114.72, the highest level since May 4. US West Texas Intermediate (WTI) crude rose $1.10, or 1.1%, to $100.57 per barrel.
Brent was on track for a third consecutive weekly gain, rising nearly 4% over the week, while WTI was set to end the week down 0.8%.
The price increases followed reports that Saudi Aramco, the kingdom's state-owned oil giant, ordered the evacuation of its headquarters in Dhahran on Thursday amid escalating fighting between Saudi Arabia and Yemen's Iran-aligned Houthi movement.
According to Reuters, the evacuation came as the conflict intensified, raising concerns about the security of Saudi Arabia's energy infrastructure and the potential impact on global oil supplies.
"The market remains concerned about a potential escalation, which, in a worst-case scenario, could trigger renewed supply disruptions," UBS analyst Giovanni Staunovo said, adding that volatile oil flows and elevated freight rates had left the market undersupplied.
The latest escalation comes amid ongoing clashes between the Houthis and a Saudi-led coalition supporting Yemen's internationally recognized government. The fighting has intensified as the Houthis have advanced toward the Bab el-Mandeb Strait, a strategic maritime chokepoint connecting the Red Sea with the Gulf of Aden.
The strait is a critical route for international shipping, including energy shipments moving between the Middle East, Europe, and other global markets. Any disruption to maritime traffic in the area could increase shipping costs and place additional pressure on global oil supplies.
With tensions threatening key energy infrastructure and shipping routes, markets remain sensitive to developments across the Middle East, where further escalation could drive additional volatility in oil prices.