Oil Prices Today: Brent Climbs Back Above $100 as Houthi Attacks on Saudi Arabia Revive Supply Fears

LONDON — Oil prices rose early Wednesday, with the international benchmark climbing back above $100 a barrel after new attacks by Yemen's Houthi rebels on Saudi Arabian infrastructure revived concerns about supply from the world's top crude exporter.

Brent crude, the global benchmark, gained about $1.04, or roughly 1%, to around $101.60 a barrel in early trading. U.S. benchmark West Texas Intermediate rose about 77 cents, or 0.9%, to around $90.20 a barrel.

The gains followed a two-day decline earlier in the week. On Monday, Brent settled 1.9% lower at about $100.32 a barrel, while WTI fell about 2.1% to around $89.20, after reports that oil flows through the Strait of Hormuz had recovered and Saudi Arabia cut prices for Asian buyers.

Houthi attacks

The latest rise came after the Iran-aligned Houthis struck Saudi infrastructure, including airports, according to OilPrice.com, adding to a series of attacks on the kingdom in recent days.

Over the weekend, the Houthis said they had launched ballistic missiles and drones at Saudi Aramco facilities in the capital, Riyadh, and in the Khurais area, one of the country's main oil-producing regions, Reuters reported. It was not immediately clear whether those attacks caused damage or disrupted production.

The Houthis have repeatedly targeted Saudi energy infrastructure since the war involving Iran began earlier this year. Attacks last month briefly shut Saudi Arabia's East-West pipeline, a key route that allows the kingdom to export crude from the Red Sea without passing through the Strait of Hormuz.

The pipeline has since resumed normal operations and is running above 80% of its capacity, according to Bloomberg.

Meanwhile, Yemeni government forces retook the Red Sea port of Mocha from the Houthis, moving closer to control of the Bab el-Mandeb Strait, a key shipping route for Saudi oil exports.

Supplies recovering, but inventories thin

Despite the attacks, there are signs that Middle East oil flows are improving.

Gulf oil exports have recovered to about 81% of pre-war levels, according to industry reports, while Kuwait is pumping about 75% of its pre-war output as more tankers risk the transit through the Strait of Hormuz.

Saudi Aramco cut its official selling price for Arab Light crude to Asian buyers to a six-year low, a move analysts saw as a push to regain market share.

But global stockpiles remain dangerously low. Aramco CEO Amin Nasser warned this week that global oil inventories have fallen below 6 billion barrels from about 10 billion before the war, with only about 10% practically available.

Nasser said "pressure at both ends of the barrel will intensify" until the Strait of Hormuz fully reopens, adding that refined fuel prices have been rising faster than crude. He said rebuilding inventories could add at least 2 million barrels a day of demand over the next two years.

Diesel crisis

The tightness has been especially severe in diesel markets.

U.S. diesel prices have reached about $6.32 a gallon, prompting President Donald Trump to defer the federal fuel tax on dyed diesel. China halted its October fuel exports, deepening the global shortage, and the White House is weighing use of the Defense Production Act as U.S. refineries operate at maximum capacity.

In Europe, fuel prices have hit records, and the European Union delayed methane rules while opening talks with refiners.

Emergency stock releases

Governments have moved to ease the crunch. The Group of Seven nations announced on Oct. 2 that they would release 100 million barrels of oil from emergency stockpiles to counter the diesel crisis.

The United States separately announced exchanges of 40 million barrels of crude from its Strategic Petroleum Reserve on Sept. 29. Japan has said it does not plan further reserve releases after the G7 pledge.

Meanwhile, OPEC+ decided to keep its November production quota unchanged at 31.01 million barrels a day.

EIA raises forecast

The U.S. Energy Information Administration raised its oil price forecast in its monthly Short-Term Energy Outlook released Tuesday.

The agency now expects Brent to average $105 a barrel in the fourth quarter of 2026, $14 higher than its forecast a month ago. It cited attacks on Saudi Arabia's East-West pipeline as a sign of continued volatility, along with extreme tightness in diesel markets that is boosting refiners' demand for crude.

The EIA expects Brent to fall to an average of $84 a barrel in 2027 as Middle East production and flows increase.

Iran pressure

Iran's oil sector remains under heavy strain. At least 50 Iranian tankers are stuck in the Persian Gulf as a U.S. blockade holds, according to industry reports, and Iran's oil minister resigned as the blockade choked crude exports.

Analysts warn that the conflict could flare again. Mizuho's Robert Yawger said Iran may try to "take advantage of the period leading up to the midterm elections," according to Bloomberg.

Prices still elevated

Brent remains more than 50% higher than a year ago, reflecting the severe supply disruptions caused by the war. Prices surged above $115 a barrel earlier this year, the highest since 2022, after Iran effectively shut the Strait of Hormuz, through which about a fifth of the world's oil normally flows.

High energy prices have rippled through the global economy, pushing up inflation and prompting central banks, including the Federal Reserve and the Reserve Bank of Australia, to raise or consider raising interest rates.

Traders will watch weekly U.S. inventory data, further developments in the Red Sea and Persian Gulf, and the pace of recovery in Gulf exports.

Any new attacks on Saudi infrastructure could push prices higher, while continued improvement in shipping through the Strait of Hormuz could ease pressure on the market.