Brent crude rises 1.77% as attacks on regional targets increase concerns over Middle East shipping routes and global energy supplies
International oil prices climbed on Thursday as fresh attacks attributed to Yemen’s Iran-aligned Houthi movement heightened concerns about a wider escalation of conflict in the Middle East and the potential disruption of global energy supplies.
Brent crude futures rose $1.93, or 1.77%, to $110.75 per barrel as of 0442 GMT, while US West Texas Intermediate crude gained $1.43, or 1.47%, to $98.58 per barrel.
The gains followed a largely unchanged settlement for Brent in the previous session, while WTI had eased by 67 cents.
The latest advance reflected renewed concerns about the security of energy infrastructure and maritime transportation routes in a region that remains critical to international oil production and exports.
According to the supplied Reuters report, attacks on Wednesday included an incident at a civilian airport in Dammam, Saudi Arabia, where at least one person was killed and eight others were wounded, as well as a drone attack on a Saudi oil field that killed two people.
The reported incidents heightened fears that further escalation could affect energy infrastructure or disrupt shipments from the region.
Market analysts highlight renewed risk premium
ING analysts said in a note on Thursday that oil prices remained well supported, with Brent returning above $110 per barrel following the additional attacks in Saudi Arabia.
The latest movements demonstrate how geopolitical developments can quickly influence oil prices by increasing the perceived risk of supply interruptions.
Even where actual production has not been reduced, traders may demand higher prices to compensate for the possibility of future disruption.
The extent of the effect depends on the scale of the attacks, the vulnerability of energy facilities, the response from regional governments and whether the conflict spreads to additional production or transportation assets.
The report also said US officials had indicated plans to withdraw family members from several additional US diplomatic missions in the region, reflecting broader security concerns.
Separately, Iranian media reported explosions in Sirik in southern Iran, although the nature and origin of those explosions were not immediately established in the supplied account.
Shipping security remains critical
The Middle East is central to global energy markets because major producers rely on maritime routes to deliver crude oil and petroleum products to international buyers.
Any disruption to shipping, production facilities or export infrastructure could tighten supply and increase costs for refiners and other energy consumers.
For oil-importing economies, sustained price increases can raise fuel costs, transportation expenses and the cost of producing goods and services.
The impact on individual countries varies according to their domestic production, refining capacity, import dependence, exchange rates and fuel-pricing arrangements.
Implications for Nigeria and global markets
For Nigeria, higher international crude prices could support potential export earnings, provided production volumes, export arrangements and other fiscal conditions remain favourable.
However, rising global oil prices can also increase the cost of refined petroleum products and place pressure on businesses and households, particularly where higher costs feed into transport and logistics.
The effect on public revenue will also depend on production performance, crude quality differentials, government deductions and the broader fiscal framework.
Globally, the latest increase in oil prices could add to inflationary concerns if elevated energy costs persist.
Investors will therefore continue monitoring developments around Saudi Arabia, Iran and regional shipping routes, as well as official information on production and exports.
The immediate outlook for crude oil remains closely linked to whether the latest attacks lead to sustained supply disruptions or are contained without further escalation.
