New Delhi: Crude oil prices rose sharply on Thursday as deadly attacks in Saudi Arabia and rising tensions in the Middle East added to concerns about global oil supplies. Brent Crude climbed to around $111 a barrel, while US West Texas Intermediate (WTI) crude moved towards $99.
At the time of writing, Brent Crude was trading at $111.63 a barrel, up 2.58 percent. WTI prices also remained elevated, adding to concerns over the impact of supply disruptions on global markets.
The rise in crude oil prices followed a series of attacks in Saudi Arabia. Yemen's Iran-aligned Houthi group struck several targets on Wednesday, killing at least one person and injuring eight others at a civilian airport in Dammam, according to reports.
Two more people were killed in a drone attack on a Saudi oil field, adding to concerns about the security of energy infrastructure in the region. The US State Department is also planning to withdraw family members from several other US diplomatic missions in the area, US officials indicated.
Meanwhile, Iranian media reported explosions in Sirik in southern Iran on Wednesday. The nature and origin of those explosions remained unknown.
Tensions around the Strait of Hormuz have further added to uncertainty in the global oil market.
Iran's Islamic Revolutionary Guard Corps Navy stated on Thursday that four vessels involved in illegal oil transfers in the northern Persian Gulf were hit simultaneously and caught fire after being tracked by its forces on Wednesday.
The Revolutionary Guard also reported that three other vessels had struck mines west of the Strait of Hormuz. It warned the US military that continued provocations could lead to a wider response against regional bases.
These developments have raised concerns about further disruptions to oil shipments through a crucial route for global energy supplies.
Global oil inventories continue to face pressure from supply disruptions, keeping crude prices elevated. With attacks on energy infrastructure and tensions involving Iran, Saudi Arabia, and the US continuing to threaten supply routes, market participants are monitoring regional developments closely.
Any further disruption to oil production or shipments could intensify the pressure on crude prices, which have already climbed amid widespread worries regarding the availability of global supplies.