Oil rose to multi-week highs after Houthi strikes on facilities in Saudi Arabia

During the session, Brent rose to $99.46 per barrel — a six-week high, while WTI reached $94.73, its highest level since June 8. Brent quotes were up 1.72% by 13:54 MSK, and WTI — by 2.72%.

KCM Trade analyst Tim Waterer linked the price increase to a real physical shortage and geopolitical risk. “The momentum reflects both a real physical shortage — the number of tankers passing through the Strait of Hormuz remains far below normal — and a clear geopolitical risk premium”, he said. Waterer added that by the end of the year, oil is likely to remain at a high level as long as the dispute over control of the strait continues amid weak diplomacy.

Operations at some energy facilities in Saudi Arabia, the world’s largest oil exporter, were halted on Tuesday after military strikes by the Houthis. As a result, 73 people were injured.

Meanwhile, Iran threatened the United States with economic war and said that the Islamic Revolutionary Guard Corps had used a new ballistic missile. On Saturday, the U.S. Central Command said that as part of enforcing a naval blockade of Iran, the U.S. military struck three Iranian oil tankers, including one near Kharg Island.

Goldman Sachs raised its forecast for Brent for December 2026 by $5 to $85 per barrel, and for WTI to $80 per barrel. The bank also raised its 2027 forecast by $5: to $80 per barrel for Brent and to $75 for WTI. The bank explained the revision to its outlook with a scenario in which disruptions to Middle Eastern seaborne oil exports would spill over into next year.

Sources

• Material: ru.themoscowtimes.com