Oil prices surged on Wednesday, October 28, with Brent crude crossing $115 a barrel after declining in previous sessions, after Yemen’s Iran-aligned Houthi group claimed responsibility for a missile strike on Saudi Arabian’s largest oil refinery, reigniting fears of Middle East supply disruptions amid the ongoing conflict involving Iran and its proxies.
At around 9.20 am, Brent crude rose $1.56 or 1.37 percent to reach $115.49 per barrel, while U.S. West Texas Intermediate (WTI) futures climbed $1.50 or 1.51 percent to $101.41. The latest surge follows a $2 drop in oil prices on Tuesday driven by temporary optimism around regional peace talks in Middle East.
The Houthis stated they targeted a facility with a daily processing capacity of 550,000 barrels. While Saudi authorities have yet to confirm the attack, the claimed strike represents a significant escalation against the world's second-largest crude producer.
Market participants are weighing several competing factors behind the rise in the oil prices:
Oil prices have remained volatile as the Middle East crisis enters its eighth month