On Wednesday, oil prices rose as investors reacted to the Houthi missile attack on Saudi Arabia's Ras Tanura refinery, the country's largest. Brent crude futures climbed by $1.50 to $115.59 per barrel, while U.S. West Texas Intermediate crude increased by $1.47 to $101.37 per barrel.
This incident has raised fears of escalating conflict in the region, which could lead to further disruptions in oil supply. Former President Donald Trump commented on the situation, suggesting that any resolution with Iran must prevent the country from acquiring nuclear weapons, which adds to the uncertainty surrounding geopolitical stability.
Additionally, Israel's political landscape appears fragmented, with no clear majority emerging from recent elections, complicating the nation's stance towards Iran. These developments contribute to a geopolitical risk premium in oil prices, as traders remain vigilant about potential supply chain disruptions