Oil Prices Rise, Houthis Attack, Hormuz Delay

Oil Prices Rise, Houthis Attack, Hormuz Delay

Oil prices extended recent gains on Tuesday as heightened concerns over Middle‑East supply disruptions pushed Brent crude futures up 0.9% to $106.64 a barrel and West Texas Intermediate (WTI) futures up 0.9% to $102.34 a barrel by 20:16 ET (00:16 GMT). The price moves reflected market anxiety after Yemen’s Iran‑aligned Houthi group launched additional strikes against Saudi Arabia, targeting key positions along the Red Sea and the Bab al‑Mandab strait, which facilitate oil tanker traffic.

The latest Houthi offensive followed earlier attacks that temporarily knocked Riyadh’s east‑west pipeline offline, further threatening Saudi oil exports. Analysts cited in the article estimate that the new front could disrupt an additional 4%‑5% of global oil supplies, keeping the crude risk premium elevated.

Talks scheduled in Muscat to discuss reopening the Strait of Hormuz were postponed by Oman, with no new date announced. Iran reiterated that it will not engage in Hormuz talks until its conditions are satisfied. Flow data indicate that traffic through Hormuz remains at only a fraction of pre‑war levels, offering little relief to global crude supplies. Iran claimed a Panamanian‑flagged tanker was struck by sea mines while transiting Hormuz, a report that U.S. Central Command labeled false.

U.S. President Donald Trump reiterated his claim that Iran is seeking a peace deal, a statement Tehran denied, emphasizing that no talks will occur without meeting its stipulated conditions. The Strait of Hormuz historically accounted for roughly one‑fifth of world oil shipments before the U.S.–Iran conflict, underscoring its strategic importance.

Key figures: Brent $106.64/bbl (+0.9%); WTI $102.34/bbl (+0.9%); potential 4%‑5% additional global supply disruption.

Implications: Continued geopolitical tension and postponed diplomatic engagement keep crude markets on a heightened risk premium, supporting elevated oil price levels.