FX.co ★ Oil Rises to $95 Amid Renewed Middle East Attacks

Crude oil climbed to around $95 a barrel on Wednesday, driven by renewed attacks across the Middle East and the latest market assessment from the International Energy Agency (IEA). In its October Oil Market Report, the IEA cautioned that tightness in diesel markets could persist well into 2027, while a new wave of attacks on Saudi Arabia threatens to derail a nascent recovery in global oil supply.

Fighting between Saudi Arabia and the Iran-backed Houthi movement has continued to intensify. Saudi Arabia’s Ministry of Energy reported an overnight strike on an administrative building owned by state oil giant Saudi Aramco, following a series of Houthi attacks on Riyadh over the past week. In response, a Saudi-led coalition was reported to have targeted Houthi energy terminals and fuel storage facilities in Yemen.

At the same time, tensions between the United States and Iran remained high. US Central Command dismissed assertions by the commander of Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy that Tehran controls the Strait of Hormuz and would “sink” any approaching US Navy warships.