Brent Rises as Middle East Tensions Escalate

Brent crude climbed above $110 per barrel on Thursday, recouping losses from earlier this week after a drone attack on Saudi Aramco’s Shaybah oil field killed two people. The incident underscored rising tensions in the Middle East and heightened concerns over further disruptions to energy supplies. The US has also ordered some personnel and family members to leave American embassies in Saudi Arabia. Meanwhile, Ukraine launched large-scale drone attacks on Russia this week, targeting critical oil infrastructure and signaling Kyiv’s intention to prevent Moscow from expanding diesel exports under an agreement between Presidents Trump and Putin. However, further gains in oil prices may be constrained by rising crude shipments from the Middle East, with export flows nearing prewar levels. Saudi Arabia’s crude exports increased by 7.9% in August, reaching their highest level since March. Russia is also expected to deliver its first diesel shipment to the US on Thursday.

Brent crude rose above $109 a barrel on Wednesday, erasing earlier losses in a volatile session amid escalating attacks on shipping and energy infrastructure across the Middle East. Iran’s Revolutionary Guards said naval mines had halted three tankers attempting to use routes Tehran deemed unauthorized, while the UK Maritime Trade Operations agency reported a vessel had been struck near Oman. Despite the security risks, US Secretary of State Marco Rubio said shipments through the Strait of Hormuz were approaching prewar levels, while data from Kpler and Vortexa showed broader Middle Eastern exports had increased since the summer. Separately, Yemen’s Houthi militants claimed attacks on Saudi Aramco facilities in Yanbu and the Shaybah oilfield, as well as airports in Riyadh and Abha. US EIA data showed crude inventories fell by just over 3 million barrels last week, below the 4.9 million-barrel decline reported by industry data.

Brent crude reversed earlier gains to trade below $108 a barrel on Wednesday, as relatively strong flows through the Strait of Hormuz offset concerns over escalating attacks on shipping and energy infrastructure across the Middle East. Iran’s Revolutionary Guards said naval mines had halted three tankers attempting to use routes Tehran considered unauthorized, while the UK Maritime Trade Operations agency reported a vessel had been struck near Oman. Despite the security risks, US Secretary of State Marco Rubio said shipments through the chokepoint were approaching prewar levels, while data from Kpler and Vortexa showed broader Middle Eastern exports had risen since the summer. Separately, Yemen’s Houthi militants claimed attacks on Saudi Aramco facilities in Yanbu and the Shaybah oilfield, as well as airports in Riyadh and Abha. EIA data showed US crude inventories fell by just over 3 million barrels last week, less than industry data reports of a 4.9 million-barrel decline.