Houthi attacks on Saudi Arabia as oil boom undermines diplomatic efforts

Oil prices bounced back in Asian trading on Wednesday after two days of decline, as fresh attacks on Saudi sites by Yemen's Iran-aligned Houthi group threatened to derail diplomatic steps aimed at reducing Middle East tensions.

At 21:20ET (01:20GMT), Brent futures for December were up 1.5% at $115.60 a barrel, while WTI for the same month was up 1.2% at $101.13.

Prices hit a six-month high last week, but fell over the past two sessions as traders eyed talks to stop the fight.

Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran on Monday and said they would continue to discuss ways to promote peace and security, according to state media.

However, the Houthis claimed on Tuesday that they fired a ballistic missile at Saudi Arabia's Rastanura refinery – the kingdom's largest – underscoring how vulnerable energy sites remain as the regional war continues.

Earlier in the week they attacked pumping stations on the Saudi East-West oil pipeline, which lets crude bypass the Strait of Hormuz, and also attacked Riyadh's King Khalid International Airport.

Those attacks have raised questions about the security of alternative export routes, especially as the vital Strait of Hormuz is badly disrupted by the broader conflict involving Iran.

Brent broke above $117 a barrel last week, its highest level since April, after tankers were targeted near the strait.

US inventory numbers released on Tuesday gave another boost to the market.

अमेरिकन पेट्रोलियम इंस्टीट्यूट ने कहा कि अक्टूबर 23 को समाप्त सप्ताह में कच्चे तेल के स्टॉक में 2.03 मिलियन बैरल की गिरावट आई, जबकि विश्लेषकों ने 800,000 बैरल की वृद्धि की उम्मीद की थी। एक सप्ताह पहले 4.93 मिलियन बैरल ड्रॉ के बाद यह गिरावट आई।

The inventory picture was mixed. Gasoline stocks increased by 2.39 million barrels, while distillate inventories increased by 380,000 barrels.

Traders will keep an eye on the Energy Information Administration's report due on Wednesday.

The market is also keyed to the Fed’s policy decision on Wednesday for clues on the economic outlook and fuel demand. Higher oil prices could stoke inflation, making the Fed's job tougher.

Which stocks is our AI buying this month?

Propix AI rebuilds dozens of stock strategies every month, screening thousands of companies on 100+ financial metrics. No guesses, no narratives – just what the data is. The Elite is beating its benchmark by 35% so far. Mid-cap movers up 31%. And Tech Titans, our flagship, has beaten the S&P500 by 117% in nearly three years since launch, with each rebalancing updated monthly.

Key tips for crude oil traders

• Despite recent declines, oil prices are rising due to Houthi missile and pipeline attacks.
• Both Brent and WTI recorded gains of around 1‑1.5% in Asian trade.
• US crude oil inventories fell more than expected, supporting the rally.
• The Fed policy outlook and potential inflation pressures add additional uncertainty.