Oil futures experienced an upward move on Wednesday following reports that Yemen’s Iran-aligned Houthi forces had launched a missile strike against a Saudi-operated tanker near Yanbu, a critical export hub for Saudi crude. Brent crude futures increased by $1.51, or 1.9%, reaching $80.87 per barrel, while U.S. West Texas Intermediate futures climbed 90 cents, or 1.19%, to $76.67.
The attack announcement reversed momentum from the previous trading session, when reports of diplomatic progress in Middle East negotiations had pushed prices lower. On Tuesday, Qatar indicated that mediators were advancing toward resolving the conflict, which sent Brent crude below $80 per barrel for the first time since July 13. That development had trimmed prices by approximately 5% the prior day. Tehran subsequently disputed claims that active peace discussions were taking place, conflicting with statements made by the U.S. President.
Analysts noted that while immediate geopolitical risk premiums had unwound from earlier levels, broader supply considerations warranted continued vigilance. Before the conflict commenced, approximately 20% of global oil and liquefied natural gas trade flowed through the Strait of Hormuz, highlighting the strategic importance of regional stability. Negotiations appear centered on questions of whether Iran would retain some authority over waterway control and the extent to which the U.S. would maintain its negotiating position on that issue.
Separately, U.S. crude and gasoline inventories posted increases for the week ending July 31, with crude stocks rising by roughly 2.7 million barrels according to data from the American Petroleum Institute, while distillate inventories declined. In additional supply developments, China eased restrictions on fuel exports for August.
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