Oil prices climb as Middle East and Russia conflicts threaten supply routes

Brent crude futures moved above $106 a barrel after Houthi rebels carried out missile and drone attacks throughout Saudi Arabia, including a strike that damaged Saudi Aramco’s headquarters. The escalation follows a surge in Iranian attacks on tankers in the Strait of Hormuz, threatening a rebound in Gulf oil supplies. Simultaneously, Russia and Ukraine exchanged strikes on each other's energy assets, adding to market uncertainty.

West Texas Intermediate closed roughly 1% higher, benefitting from commodity trading advisers shifting more bullish bets to the U.S. benchmark than to Brent. Freight rates stay elevated, pushing European refiners to compete for local supplies while prompting some buyers to turn to American barrels. The International Energy Agency warned that ongoing conflicts will keep diesel and other fuels under pressure into 2027.