Oil prices rise on supply concerns as Houthis attack Saudi Arabia

Oil prices experienced an increase in early trading on Friday due to heightened supply concerns following a series of attacks by Yemen's Iran-aligned Houthi movement against Saudi Arabia. This marks the fourth consecutive month of rising prices, with the current surge being the most significant since July.

As of 0122 GMT, Brent crude futures climbed by 86 cents, or 0.75%, reaching $115.74 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures rose by 72 cents, or 0.71%, to settle at $102.72 per barrel. For the month, Brent is poised to end nearly 14% higher, while WTI is on track for a 15% increase, crossing the $100 threshold for the first time since April.

On Thursday, the Houthis announced they had targeted multiple sites in Saudi Arabia, including the country's largest oil refinery, Ras Tanura, as well as the Rabigh refinery and an Aramco facility in Abqaiq. In response, a Saudi-led coalition reported that they had intercepted a cruise missile launched by the Houthis aimed at the western region of the kingdom.

Saul Kavonic, Head of Energy Research at MST Marquee, commented, "Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks."

In related developments, US President Donald Trump revealed on Thursday that Vice President JD Vance had reached out to Iran to facilitate the country's acquisition of medical supplies. This came after reports indicated that Vance had written to Tehran's leading security official in an effort to revive peace negotiations.

According to Iran's semi-official Tasnim news agency, Iran has received the letter from Vance but has not yet issued a response. The agency noted that Tehran expects the US to comply with its conditions, stating that "any position that contradicts this framework is unacceptable."

Furthermore, Iran's Revolutionary Guards reported that three tankers struck sea mines, resulting in explosions and fires while navigating an unauthorized route south of the Strait of Hormuz.

Amid these escalating security concerns in the region, major oil companies ExxonMobil and Chevron have decided to cancel plans for their executives to attend the United Arab Emirates' largest oil exhibition scheduled for next week, as confirmed by two sources familiar with the situation.