Oil Prices Rise on Saudi Risk, Diesel Flow

Oil prices climbed on Wednesday as market traders weighed immediate supply risks from escalating conflict between Saudi Arabia and Yemen’s Iran-allied Houthis against potential relief from increased Russian diesel exports.

Brent crude futures rose 89 cents, or 0.8 per cent, to $106.58 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 80 cents, or 0.9 per cent, to $94.94.

Industry analysts noted that while Middle East military escalations continue to push benchmarks higher, expectations of expanding Russian diesel supplies will likely cap extreme price spikes, keeping WTI trading within a $90 to $100 range.

The latest price surge follows a direct Houthi attack on a Saudi Aramco administrative facility in Dhahran, which triggered a limited fire.

The strike forms part of a broader, week-long campaign featuring drone and ballistic missile strikes against Saudi infrastructure—including four separate attacks on Riyadh’s international airport—in retaliation for Saudi military support of Yemeni government forces.

Meanwhile, senior Iranian officials revealed that Iran is deploying new tactics against shipping in the Strait of Hormuz to keep crude prices elevated, aiming to influence upcoming U.S. midterm elections.

To cushion global market disruptions caused by the broader U.S.-Iran conflict, Saudi Arabia previously ramped up output, contributing to a sharp overall production increase from OPEC+.

Simultaneously, Russia reiterated that its diesel export agreement with the U.S. operates independently of peace talks regarding Ukraine, dismissing reports that American envoys linked the energy arrangement to broader diplomatic negotiations.