Brent crude oil tops $115, a six-month high, as tensions swell in the Middle East
Oil prices surge as U.S. signals potential strikes and Houthi attacks target Saudi infrastructure
Quick Look
- Brent crude reached a six-month high of $115.41 per barrel amid expectations of U.S. strikes on Iran.
- Tensions escalate following Houthi drone attacks on Saudi oil fields and airports, prompting evacuations at Saudi Aramco's headquarters.
AI-generated summary
Why It Matters
Tensions between the U.S. and Iran have intensified, with reports of planned strikes following U.S. midterm elections. Houthi militants continue to target Saudi oil infrastructure.
Brent crude oil was trading at a six-month high on Friday, as investors increasingly expect the U.S. to resume strikes on Iran in the coming weeks.
Front-month Brent crude oil futures were 2% higher at $115.41 per barrel, the highest level since April 30. U.S. West Texas Intermediate crude futures were up 2.4% to trade at $101.86 a barrel.
Iran's army chief, meanwhile, said the country's military is fully prepared for "asymmetric warfare" after strengthening its capabilities, according to the state media agency Tasnim.
Brent futures were on track for a weekly rise of about 5%, putting the contracts on course for their third consecutive week of gains. WTI futures were on track for a slight weekly gain of 0.5%.
President Donald Trump said Wednesday that the U.S. was not negotiating with Iran and something would happen "fairly soon." His cryptic remarks came as U.S. officials told The New York Times that the U.S. and Israel have plans for fresh strikes on Iran after the midterm elections.
Iran-allied Houthi militants have continued to strike Saudi Arabia. The U.S. State Department has ordered all non-essential personnel to leave Saudi Arabia due to the strikes.
A drone attack targeting the Shaybah oil field Wednesday in the Eastern Region left two people dead and two injured, according to Saudi state media. At least two people were killed and eight injured in an attack on King Fahd International Airport in Dammam on Wednesday.
Oil giant Saudi Aramco have told staff to evacuate its Dhahran headquarters and work remotely following a series of attacks by Iran-backed Houthi rebels, Reuters reported.
Open Questions
- What is the specific timeline for the potential U.S. strikes?
- How will Saudi Arabia respond to the ongoing drone attacks?
