On Wednesday, Brent crude traded at $80.32 per barrel, up over 1.2%, while U.S. West Texas Intermediate futures increased by 0.67% to $76.28. The Houthis claimed responsibility for hitting a Saudi tanker near Yanbu, a key port for Saudi oil exports, which has raised concerns about regional stability and the potential for further conflict.
This incident has dampened optimism for a ceasefire in the region, especially after U.S. Treasury Secretary Scott Bessent suggested a deal to secure the Strait of Hormuz could be imminent. The Strait is crucial for the transit of oil and other goods, and the recent volatility in oil prices reflects market sensitivity to geopolitical developments.
Prior to this, oil prices had dropped about 6% on Tuesday amid hopes for a resolution to tensions, following President Trump's decision to pursue negotiations with Iran instead of military action