Oil climbs as US pulls diplomats from Saudi Arabia amid Houthi attacks

Oil markets edged higher on Thursday, with Brent crude up $1.29 to $110.11 a barrel and U.S. West Texas Intermediate climbing $0.97 to $98.12, after the United States directed diplomats and their families to depart from its Saudi missions. The move follows a series of Houthi attacks that killed two people at a Saudi oil facility and caused casualties at Dammam's civilian airport. Iranian media reported unexplained blasts in Sirik, and Iran's foreign minister said Tehran was ready to defend itself, while the Saudi president warned the U.S. against blockades.

Shipping data showed at least 18 attacks on vessels in the past two weeks, raising concerns about tanker safety in the Gulf of Oman and beyond the Strait of Hormuz. In a separate development, Russian President Vladimir Putin hosted U.S. Special Envoy Steve Witkoff in St Petersburg to revive U.S.-mediated negotiations on ending the war in Ukraine, with Ukrainian President Volodymyr Zelenskiy expressing support for the talks. U.S. energy data also showed a draw of 3.06 million barrels of crude and a rise in diesel and heating-oil inventories, prompting the Department of Energy to offer loans from the emergency heating-oil reserve.