Oil Prices Edge Higher as Iranian Strikes Threaten Gulf Supply Routes

Oil markets nudged higher on Tuesday as West Texas Intermediate approached $95 a barrel and Brent stayed under $106, following U.S. assistance in transporting over 19 million barrels through the Strait of Hormuz. The gains come amid a surge in Iranian attacks on tankers in the waterway, which threatens to reverse the recent rebound in Gulf supply to near-pre-war volumes. Saudi Arabia also faced missile and drone strikes from Yemen’s Houthi rebels, including damage to the Saudi Aramco headquarters, while the kingdom reported a one-third jump in September crude production, still well short of historic output.

Tanker operators are increasingly using at-sea transfers to limit exposure, but four vessels were hit by unknown projectiles on Oct 11, double the prior week’s average. The heightened risk has led some supertankers to steer clear of the Persian Gulf, adding pressure on Washington to consider further support for Saudi Arabia. Analysts say the overall Gulf shipping picture has changed little over the past three months despite the flare-up.