Oil Prices Rebound on Saudi Infrastructure Attacks

Oil prices rose sharply on Thursday, recovering from early losses as escalating attacks on energy infrastructure and shipping routes in the Middle East increased concerns about global supply.

Brent crude futures settled $3.06 higher, or 3.3%, at $95.82 a barrel. US West Texas Intermediate crude gained $2.21, or 2.6%, to close at $88.74.

Despite the advance, both benchmarks remained approximately 2.5% lower for the week.

Trading turned higher after Yemen’s Iran-aligned Houthi group said it had attacked a pumping station along Saudi Arabia’s East-West oil pipeline, an oil facility in Yanbu and an Aramco building in Riyadh. The Saudi-led military coalition subsequently said it intercepted and destroyed two drones launched by the group.

Strait of Hormuz Disruptions Raise Supply Concerns

Shipping security remained a major concern as attacks and incidents continued across the Gulf region. Iran’s military said four oil tankers were hit by explosions in the Strait of Hormuz after ignoring warnings. The accounts had not been independently verified.

The strategic waterway carried nearly one-fifth of global crude oil before the US-Israeli conflict with Iran. Continued disruptions therefore pose a risk to the movement of significant volumes of energy supplies.

The broader situation has included burning tankers, oil spills and attacks on regional infrastructure. These developments have increased the risk premium embedded in crude prices as traders assess the potential duration and scale of shipping interruptions.

Russian Energy Infrastructure Also Comes Under Attack

Ukraine said its drones struck the port area of Ust-Luga in northwestern Russia, causing a fire and damaging part of its fuel tank network.

Ust-Luga is a major outlet for Russian oil, petroleum products, grain and other commodities. The latest attack adds another source of uncertainty for energy markets already responding to disruptions in the Middle East.

Separately, negotiations involving Russian President Vladimir Putin and US representatives began in Moscow. A US envoy said Putin had agreed to include European representatives in the next round of discussions.

Production and US Inventories Limit the Upside

Supply-side data offered some counterbalance to geopolitical concerns. OPEC+ figures showed crude production increased in October, led by higher Saudi output despite regional shipping disruptions.

In the United States, crude oil, gasoline and distillate inventories also increased during the previous week, according to government data.

President Donald Trump added to market uncertainty after saying Washington did not need a deal with Iran. Meanwhile, the US administration was expected to extend a waiver allowing certain foreign-flagged vessels to transport oil and other commodities between US ports.

What Investors Should Watch Next

Oil markets will remain sensitive to developments affecting the Strait of Hormuz, Saudi energy infrastructure and Russian export facilities. The extent of shipping disruptions and the ability of producers to maintain exports will be important factors in determining near-term price direction.

Investors will also monitor OPEC+ production trends and US inventory data for evidence of whether available supply can offset geopolitical risks. The latest session demonstrated how quickly crude prices can respond when threats to major energy routes intensify.