Oil Extends Gains on Mideast Escalations

Crude oil climbed toward $95 per barrel on Wednesday, marking its fifth consecutive session of gains as escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels intensified concerns over Middle East supply disruptions. On Tuesday, Yemen’s Houthi militants struck Saudi Aramco’s headquarters in Dhahran, eastern Saudi Arabia, with a missile attack that sparked a fire in part of the complex. The rebels also targeted Riyadh’s main airport over the weekend, while a Saudi-led coalition launched an offensive to retake rebel-controlled territory in Yemen. Meanwhile, Tehran has intensified attacks on tankers transiting the Strait of Hormuz, although the US said it had helped facilitate the passage of more than 19 million barrels of crude through the strategic waterway. In Europe, President Trump defended his diesel export agreement with Russia, stating that the additional supplies would enter the global market and help ease elevated prices.

Crude oil pared earlier losses to trade near $95 a barrel on Tuesday amid concerns over supply risks linked to the conflict between Saudi Arabia and the Iran-backed Houthis. The militants have stepped up attacks on Saudi Arabia since last week, targeting energy facilities and airports. The Houthis attacked King Khalid International Airport in Riyadh on Saturday, while a Saudi-led coalition said it intercepted a ballistic missile fired toward the capital on Monday. Meanwhile, Iran is fortifying sensitive sites, including nuclear facilities, and rallying supporters amid concerns over possible renewed US attacks after the November midterm elections. In contrast, prospects for additional Russian energy supplies to global markets limited oil’s gains. An agreement would allow Russia to supply diesel to the US and other markets for six months. However, Goldman Sachs said the additional Russian diesel supplies were unlikely to significantly ease pressure on global fuel prices.

Crude oil pared earlier losses and was just below $94 a barrel on Tuesday, following three sessions of gains, as investors weighed renewed Middle East supply risks against the prospect of additional Russian fuel exports. Attacks on Riyadh’s international airport and tankers near the Strait of Hormuz have heightened concerns over the security of Gulf infrastructure and shipping routes. OPEC raised its forecast for global oil demand growth in 2027, citing the need to replenish inventories depleted by the Iran conflict, but lowered its 2026 outlook for a sixth consecutive time. The group also reported stronger OPEC+ production in September, led by Saudi Arabia, whose output rose by more than 2 million barrels per day to 8.372 million. Meanwhile, US President Donald Trump said Russia would supply diesel to global markets after Washington temporarily eased restrictions on Russian fuel.