Brent Crude Surges Above $95 As Houthi Attacks On Saudi Tankers Escalate Tensions

Oil prices extended their upward rally on Wednesday as fresh tensions in the Middle East triggered concerns over possible disruptions to global crude supplies. Brent crude surged above $95 a barrel after Iran-backed Houthi militants claimed responsibility for attacks on two Saudi Arabian oil tankers in the Red Sea, raising fears that the conflict could spread to critical energy transportation routes. Brent crude rose as much as 1.4% during trading, adding to gains from the previous session when it closed at a six-week high. The international benchmark traded above $95 a barrel, while West Texas Intermediate (WTI), the US crude benchmark, hovered near $88 a barrel.

The increase reflected growing concerns among traders that continued attacks in key maritime corridors could affect oil shipments and create further volatility in global energy markets. The Houthi group said it had carried out attacks on the Saudi-flagged oil tankers Encelia and Layla using missiles and drones. The group alleged that the vessels had violated a blockade, though details about the nature of the alleged violations were not immediately available. The claims came shortly before the UK Maritime Trade Operations (UKMTO) reported that a commercial vessel had been struck by a projectile near Al Shuqaiq, off Saudi Arabia’s Red Sea coast.

According to UKMTO, the incident caused a fire onboard the vessel, but authorities did not immediately identify the ship involved or provide details about the extent of the damage. Maritime security agencies have been closely monitoring activity in the Red Sea, where attacks on commercial vessels have increased in recent months amid wider regional tensions. The latest incidents mark a major escalation as they represent the first direct attacks on oil tankers in the Red Sea.

The development has increased concerns among energy traders because the waterway has become an increasingly important route for global oil shipments. Saudi Arabia has relied on the Red Sea as an alternative export corridor, allowing the kingdom to transport millions of barrels of crude to international markets while reducing dependence on the Strait of Hormuz.

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The Strait of Hormuz, located between Iran and Oman, remains one of the world’s most important oil transit chokepoints. A significant portion of global crude exports passes through the narrow waterway, making any threat to its security a major concern for energy markets. Recent regional tensions and disruptions to shipping activity have already forced some companies to reconsider routes and increase security measures.

Analysts said oil markets are closely watching whether the latest attacks could lead to wider disruptions affecting production, transportation or insurance costs for vessels operating in the region. While there has been no immediate impact on Saudi Arabia’s crude output, prolonged instability around major shipping routes could create additional pressure on prices.

The rise in oil prices also comes amid broader geopolitical uncertainty in the Middle East, where Iran-aligned groups have become increasingly involved in regional conflicts. Investors remain cautious as they assess possible responses from Saudi Arabia, the United States and other international players. Energy markets are expected to remain sensitive to developments in the Red Sea and surrounding areas.

Any further attacks on oil infrastructure or commercial shipping could fuel additional price increases, while efforts to improve maritime security and reduce tensions may help ease supply concerns. For now, traders continue to monitor the situation closely as geopolitical risks remain a key factor influencing global crude prices.

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