Oil Prices Surge Past $112 as Houthi Attacks on Saudi Arabia Escalate Middle East Tensions

Oil prices rose over $3 per barrel on Thursday following new Houthi attacks on Saudi Arabia, intensifying concerns about broader Middle East conflict and supply disruptions. Brent crude climbed 3.08% to $112.17 per barrel, a five-month high, while West Texas Intermediate rose 2.76% to $99.83. The Iran-linked Yemeni Houthis struck multiple targets Wednesday, killing at least three people, including attacks on an airport in Dammam and a Saudi oil field. Iran's Revolutionary Guard reported striking four vessels in the Persian Gulf and warned US forces of potential retaliation. US crude inventories fell by 3.06 million barrels, far exceeding forecasts. Analysts expect oil prices to remain elevated until the US midterm elections, with no easing of tensions anticipated in Ukraine or the Middle East. The Trump administration proposed lending nearly a third of its heating oil reserve to curb prices amid diesel shortages from conflicts in Iran and Ukraine.