Oil prices hit two-week high

Global oil prices rose to their highest level in nearly two weeks on Monday as fears of renewed conflict in the Middle East heightened concerns over supplies, with attacks by Yemen’s Houthi rebels in Saudi Arabia and strikes on tankers in the Strait of Hormuz fuelling market uncertainty.

The prospect of increased diesel supplies from Russia and a declared halt to attacks on energy infrastructure between Russia and Ukraine failed to ease the upward pressure on prices.

Brent crude futures rose $1.24, or 1.2 per cent, to $106.19 a barrel, their highest level since September 29, at 1124 GMT. US West Texas Intermediate (WTI) crude futures gained $1.11, or 1.2 per cent, to $92.96 a barrel at the same time.

Oil prices had eased earlier but rebounded as concerns over regional security intensified.

Yemen’s Iran-backed Houthi rebels claimed responsibility for a Saturday attack on King Khalid International Airport in Saudi Arabia’s capital, Riyadh. Reports said the attack killed 13 people and injured more than 300.

A further attack on the airport on Sunday killed one person and wounded 11 others, according to the reports.

The repeated attacks have raised fresh concerns over the security of critical energy infrastructure and supply networks across the Middle East. Market participants fear that a wider conflict could disrupt oil production, transportation and exports.

Concerns over shipping safety in the Strait of Hormuz have added to the pressure on oil prices. Attacks on tankers travelling through the strategic waterway have increased this month, threatening to undermine the recovery in Middle Eastern crude exports seen in September.

Around one-fifth of the world’s oil supplies normally pass through the Strait of Hormuz, making it a critical route for global energy trade. A prolonged disruption to shipping could tighten supplies and push prices higher.

Meanwhile, US President Donald Trump said an understanding had been reached for substantial diesel supplies from Russia. He also announced a halt to attacks on energy infrastructure between Russia and Ukraine, raising expectations of improved fuel availability.

However, the risk of further escalation in the Middle East and attacks on tankers along key shipping routes has overshadowed the prospect of additional supplies.

Analysts say announcements of increased supplies alone may not be enough to stabilise the market. Easing regional tensions, ensuring safe passage through the Strait of Hormuz and maintaining uninterrupted oil exports will be crucial to restoring market confidence.

Without an improvement in the security situation, oil prices could remain elevated in the coming days.