Oil prices rose by more than 1% on Wednesday after Yemen’s Iran-aligned Houthi group claimed it had launched a missile attack on a major oil refinery in Saudi Arabia, renewing concerns about potential disruptions to global energy supplies. The reported strike heightened market anxiety amid continuing tensions across the Middle East and uncertainty over the next steps in the conflict involving the United States and Iran. Brent crude futures climbed as traders assessed the possible impact on Saudi Arabia’s oil infrastructure, while prices also received support from a reported decline in US crude inventories. The latest gains followed a fall of nearly $2 per barrel in the previous trading session, reflecting how quickly market sentiment has been changing in response to geopolitical developments.

Brent crude futures rose $1.59, or 1.4%, to $115.47 per barrel, while US West Texas Intermediate crude gained $1.43, or 1.4%, to $101.33 per barrel in early trading on Wednesday, according to market data reported by Reuters. The rise reflected concerns that further attacks on energy infrastructure could threaten production, refining operations or exports from one of the world’s most important oil-producing regions. Saudi Arabia is the world’s largest crude oil exporter and the second-largest oil producer, making any potential disruption to its energy facilities significant for international markets. However, Saudi authorities had not immediately confirmed the reported strike, and the extent of any damage remained unclear.

The Houthis said on Tuesday that they had targeted Saudi Arabia’s largest oil refinery with a missile. The facility has a reported processing capacity of 550,000 barrels per day, making it a major part of the kingdom’s energy infrastructure. The claim came amid a wider pattern of regional attacks and rising tensions involving Iran and groups aligned with Tehran. Market participants have been monitoring developments closely because a sustained escalation could affect the availability and movement of crude oil across the Middle East. Even without a confirmed interruption to supplies, the possibility of damage to major facilities can push prices higher as traders account for the risk of future shortages. The reported attack therefore added to the geopolitical premium already reflected in crude prices.

Also Read: Gujarat Ranks Second Among Major States With 50.75% Lost Mobile Phone Recovery

Analysts said the market was increasingly pricing in the possibility that tensions could intensify again. Commodity strategists at ING said oil prices remained elevated as investors awaited greater clarity on US President Donald Trump’s next steps regarding Iran. The outlook has been complicated by uncertainty over whether Washington could resume military action and how Iran or its regional partners might respond. The United States is scheduled to hold midterm elections on November 3, another event being watched by energy traders as they assess the potential direction of US policy. ING strategists said that if the elections passed without renewed US strikes on Iran and regional tensions did not escalate, some of the additional risk premium built into oil prices could begin to recede. Any easing, however, would depend on developments on the ground.

Supply indicators in the United States also influenced trading. US crude oil inventories fell by 2.03 million barrels in the week ended October 23, according to data from the American Petroleum Institute cited by market sources. The decline contrasted with a Reuters poll of analysts, which had forecast a modest increase of around 15,000 barrels. A fall in inventories can support oil prices by suggesting that available supplies are tightening, although the figures do not by themselves establish the broader direction of demand or future stock levels. Traders were awaiting the US Energy Information Administration’s official weekly inventory report for additional information. The combination of lower reported stockpiles and concerns about Middle Eastern supply risks provided further support for the market’s upward movement.

Investors were also looking ahead to an upcoming meeting of OPEC+ oil-producing countries, where members were expected to maintain their December production targets, according to people familiar with the discussions. Output in several key member countries, including Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman, has remained below their respective targets. Market participants are also watching possible changes in Russian crude exports, with traders expecting shipments from Baltic and Black Sea ports to decline next month as domestic refineries increase diesel production. These factors add further uncertainty to the global supply outlook. For now, oil prices remain sensitive to developments in the Middle East, US policy decisions and inventory data, with the reported Saudi refinery attack reinforcing concerns that renewed hostilities could place additional pressure on energy markets.

Also Read: Sports And Education Ministries Sign MoU With UNESCO On Clean Sport Education