Trump faces tough choices as Brent crude nears $120 on Saudi-Houthi tensions

Brent crude oil prices are approaching $120 per barrel as escalating Saudi-Houthi tensions drive a fourth consecutive weekly rally, creating a difficult policy situation for US President Trump. The conflict has also forced Saudi Aramco to evacuate its headquarters for the first time since the Iran war began. The price surge comes despite little fundamental change in crude markets, with a slight drop in freight rates and flattening of backwardated curves offsetting some pressure. In response, the US Energy Department is offering 315,000 barrels of diesel from its Northeast reserve, while the first Russian diesel cargo under Trump's deal with Moscow is headed to New York. Broader energy pressures include Europe entering winter with gas at four-year highs above €93/MWh, and the EU drafting its 22nd sanctions package targeting Russian oil infrastructure. Meanwhile, US Henry Hub gas futures fell to a two-month low of $2.66 per MMBtu, defying the global rally.