Oil hits five-month high after claimed strikes on Saudi sites
Global oil prices rose to their highest level in five months on Tuesday. Yemen's Houthi rebels claimed strikes on Saudi oil sites, and ships in the Gulf region reportedly came under attack. Brent crude topped $111 a barrel for the first time since May.
Oil prices climbed to a five-month high on Tuesday as traders reacted to claimed attacks on Saudi energy sites and reports of attacks on ships in the Gulf region, CNBC and ABC News reported.
Brent crude, the global benchmark, rose as high as $111.05 a barrel, its highest since May, and was trading at $110.80 as of 4:10 a.m. Eastern time, according to CNBC, which published Reuters figures. ABC News reported later Tuesday morning that Brent had topped $111 before falling back to $110.30. That is more than 55% higher than when the Iran war began in late February, ABC said. US crude was at $105.75, according to ABC News.
Yemen's Iran-aligned Houthi rebels said Monday that they had launched attacks on Saudi targets, including an Aramco site in Yanbu, the Shaybah oil field and airports in Riyadh and Abha, CNBC reported. Saudi authorities did not immediately confirm the claims, and Reuters could not verify them, according to CNBC.
On Tuesday, a British maritime agency issued an advisory after a report of an incident involving a tanker and military forces off Oman, ABC News reported. Iranian state media said the Revolutionary Guard claimed two tankers hit naval mines south of the Strait of Hormuz. The ship-tracking firm Kpler said at least 18 vessels were reportedly attacked over two weeks, according to CNBC.
"The market is pricing in a significant risk premium, given the situation's volatility," ING analysts wrote, CNBC reported.
The price jump matters at the gas pump. The average US gallon of gas cost $4.27 on Tuesday, according to AAA data cited by ABC News, up nearly $1.30 since late February. A tentative US-Iran pause in fighting expired in August, ABC said, and attacks on oil sites and ships have continued since then.
What we know: Brent crude hit its highest price since May on Tuesday after claimed attacks on Saudi sites and reported attacks on ships.
What we don't: Whether the Houthi strikes caused damage, and how long the risk premium will last.
Where outlets agree CNBC and ABC News both report that Brent topped $111 a barrel for the first time since May after Houthi claims of strikes on Saudi oil sites.
Where they differ CNBC had Brent at $110.80 as of 4:10 a.m. Eastern time, while ABC News reported later that morning that it had slipped to $110.30.