Why did oil prices rise after the attacks involving Saudi Arabia and Iran?

Attacks on ships transiting the Strait of Hormuz, strikes involving Saudi Arabia and the Iran-allied Houthis, and Iran’s reported deployment of new tactics against vessels increased fears of supply disruptions. A container ship also sank after hitting a naval mine south of the strait.

What happened to the Saudi Aramco facility during the Houthi attack?

The Houthis attacked an administrative building belonging to state-owned Saudi Aramco in Dhahran, Saudi Arabia, and caused a limited fire, according to the Saudi energy ministry. The group said its recent missile and drone attacks were retaliation for Riyadh’s support of Yemeni government forces.

How could Russian diesel exports affect the global oil market?

Expected increases in Russian diesel exports could limit sharp oil-price movements, but the IEA said limited operational refinery capacity made a material improvement in the global gasoil balance unlikely. It said constrained diesel supplies could continue well into next year.

Oil prices gain on attacks in Saudi Arabia, Iran's new tactics to target tankers

Listen

Summary

Oil prices rose in New York on Wednesday after Houthi attacks on Saudi Aramco and Iran’s use of new tactics against ships. Brent crude gained 0.82 percent to $106.56 a barrel, while West Texas Intermediate increased 1.55 percent to $95.60. A ship sank after striking a naval mine south of the Strait of Hormuz, while attacks on regional shipping and energy facilities heightened market concerns.

Key Facts

Gulf oil flows excluding Iran rose in September to more than 81 percent of prewar levels, led by recovering Saudi exports.
Iranian oil exports fell to zero because of a U.S. blockade, while some of the Gulf supply recovery reflected redistribution of available barrels rather than increased production.
The Saudi energy ministry said a Houthi attack on a Saudi Aramco administrative building in Dhahran caused a limited fire.
Russia’s crude oil production increased by 65,000 barrels per day in September to 8.43 million barrels per day but remained 870,000 barrels per day below the previous year.
The International Energy Agency said constrained diesel supplies could persist well into next year because of limited Russian refinery capacity.

By Reuters

Published Oct 15, 2026 3:20 am KST

Gasoline prices are seen at a Shell gas station in Houston, on Oct. 2. AFP-Yonhap

NEW YORK — Oil prices rose on Wednesday after the Houthis attacked Saudi Aramco's headquarters and Iran said it was deploying new tactics to target ships and keep oil prices high.

Brent crude futures were up 87 cents, or 0.82 percent, at $106.56 a barrel by 1:25 p.m. ET (1725 GMT). U.S. West Texas Intermediate crude gained $1.46, or 1.55 percent, to $95.60, touching a three-week high.

Attacks on ships transiting the Strait of Hormuz and strikes between Saudi Arabia and the Iran-allied Houthis are driving up oil prices, said Phil Flynn, senior analyst with the Price Futures Group. "We're seeing a lot of fear trade today," he added.

Iranian officials declined to provide details of the new strategy to target ships, but one said Iran had started using different offensive tactics about 10 days ago.

Gulf oil flows excluding Iran surged in September to more than 81 percent of prewar levels, data showed, led by a recovery in Saudi exports. Iranian exports fell to zero owing to a U.S. blockade.

"More crude reaching international markets does not necessarily mean more oil is being produced," Saxo Bank analyst Ole Hansen said in a note. "Some of the recovery reflects a redistribution of available barrels, including volumes that would otherwise have supplied regional refineries."

Attacks on multiple fronts

The Houthis attacked an administrative building belonging to state-owned oil company Saudi Aramco in the city of Dhahran, causing a limited fire, Saudi Arabia's energy ministry said.

The group has fired ballistic missiles and drones at Saudi Arabia over the past week in what it says is retaliation for the kingdom's support of Yemeni government forces. Riyadh's international airport has been hit four times, with a strike on Saturday killing 13 people.

Meanwhile, a container ship sank in waters south of the Strait of Hormuz after hitting a naval mine and catching fire, Iran's Revolutionary Guards Navy said in a statement shared by state media on Wednesday. This was a day after the United Kingdom Maritime Trade Operations said a container ship and a tanker were hit by unknown projectiles within the strait.

"The expectation that increased Russian diesel exports will ease market tightness is likely to limit sharp price movement in either direction," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment.

U.S. President Donald Trump announced on Friday that Russia had agreed to supply diesel to global markets and his administration temporarily lifted U.S. sanctions on Russian diesel that were designed to deprive Moscow of revenue for its war in Ukraine.

Russia's crude oil production increased by 65,000 barrels per day in September to 8.43 million bpd but remained down 870,000 bpd year over year, the International Energy Agency said on Wednesday.

The IEA also said a lack of operational Russian refinery capacity meant that the recently announced easing of Russian diesel export restrictions was unlikely to bring any material change to the global gasoil market balance.

Constrained diesel supplies could persist well into next year, the IEA said.

The oil market was watching for weekly storage reports from the American Petroleum Institute trade group on Wednesday and the U.S. Energy Information Administration on Thursday, a day later than usual due to a holiday on Monday.

Explore More