Brent crude holds near five-month high on Gulf tensions

BENGALURU — Brent crude futures traded near $110 a barrel on Tuesday, close to a five-month high, as traders weighed reports of attacks on Gulf shipping and Houthi claims of strikes on Saudi energy sites, according to Arab News.

Brent rose 55 cents, or 0.50 percent, to $110.10 by 06:19 a.m. Saudi time, Arab News reported. The contract had reached $110.70 in the previous session, its highest since May 20.

Business Times, citing Bloomberg, put Brent just below $110. In a post on Telegram, Al Jazeera Arabic said Brent had passed $111 a barrel, also a five-month high. The post is unverified, and the figures differ slightly between sources.

Prices and market views

The November West Texas Intermediate contract, which expires on Tuesday, was up 0.24 percent at $103.91, Arab News reported. The more active December contract gained 39 cents, or 0.40 percent, to $98.93.

"Oil prices remain well-supported," ING analysts said in a note, adding that the market appeared to be pricing in a significant risk premium. They said the premium would probably erode slowly if flows continued without disruption, but that there were no signs of this yet.

Shiptracker Kpler said in a note on Monday that at least 18 vessels were reportedly attacked over two weeks. It said this keeps the risk premium in place.

"The risks to oil prices clearly lie to the upside," Hamad Hussain, a commodities economist at Capital Economics, said, according to Bloomberg.

Houthi claims and Iranian statements

The Houthis, an Iran-aligned group in Yemen, said on Monday they had launched several attacks on Saudi energy, airport and military targets. They named an Aramco site in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh and Abha airport, according to Arab News. Saudi authorities did not immediately confirm the claims, and Reuters could not verify them independently.

Also on Monday, a Houthi attack on a training camp for government security forces in Yemen's Shabwa province killed 58 people and injured more than 200, according to the Arab News report. It did not name the source of those casualty figures.

Iran's First Vice-President Mohammad Reza Aref said on Monday that Iran had "no choice" but to assert control over the Strait of Hormuz to safeguard its security, state news agency IRNA reported. He spoke during a meeting in Tajikistan with Russian Prime Minister Mikhail Mishustin. He said Iran could ensure safe passage for friendly nations and that the United States "must pay the price".

Supply flows

Gulf crude exports have continued at an accelerated pace despite the recent hostilities, Bloomberg reported. US Energy Secretary Chris Wright told Fox News that flows had recovered to about 80 percent of their level before the war, although refined product shipments remained constrained.

Iraq's oil minister said exports exceeded 3.4 million barrels a day so far in October, according to Bloomberg. Shipments are now close to pre-war levels after Iraq offered deep discounts to regional benchmarks.

Wright also said the Trump administration is authorising the sale of sanctioned oil tankers so they can ship crude legitimately. He estimated that the global "dark fleet" includes about 1,600 vessels.

Background

Brent has risen about 80 percent so far in 2026, Bloomberg reported, as widening conflicts in the Middle East and between Russia and Ukraine disrupt energy supplies.

On Friday, a US executive order waived key Russia-related sanctions and tariffs, including penalties for purchases of its energy, Arab News reported. President Donald Trump said on Saturday he had not announced a final decision, and Secretary of State Marco Rubio said officials wanted more time to evaluate.

Tim Waterer, chief analyst at KCM Trade, said additional Russian diesel supply could offer "theoretical relief". He said traders appeared more focused on the risk of further damage to energy infrastructure across the Gulf.