22.10.202623:27:45UTC+00Oil Holds Gain on Heightened Middle East Risks

Crude oil traded around $99 per barrel on Friday, hovering near a five-week high as mounting Houthi attacks on Saudi targets and reports of potential renewed US strikes on Iran heightened supply risks in the Middle East. Iran-backed Houthi militants in Yemen claimed responsibility for recent assaults on Saudi Arabia’s Red Sea port of Yanbu, as well as lethal strikes on an oil field and an airport in the world’s largest crude exporter.

At the same time, US and Israeli forces have reportedly prepared plans for renewed military action after next month’s midterm elections, with Iran’s energy infrastructure seen as a likely focus. Despite rising regional tensions and threats to shipping through the Strait of Hormuz, crude exports from the Persian Gulf have recovered to levels close to those seen before the outbreak of conflict.

In Europe, Ukraine stepped up its attacks on Russian refineries this week against the backdrop of a US-Russia agreement covering diesel supplies.