Oil rises on supply concerns as Houthis attack Saudi Arabia

Oil Prices Surge as Houthis Attack Saudi Arabia, Fueling Supply Concerns

Market Impact and Geopolitical Developments

By Helen Clark

Oil Price Movements and Monthly Gains

SINGAPORE, Oct 30 (Reuters) - Oil prices climbed in early trade on Friday on supply concerns after Yemen's Iran-aligned Houthis stepped up attacks on Saudi Arabia, on track for a fourth straight monthly gain and the steepest since July.

Brent crude futures rose 86 cents, or 0.75%, to $115.74 a barrel as of 0122 GMT. US West Texas Intermediate (WTI) crude futures rose 72 cents, or 0.71%, to $102.72.

For the month, Brent was on course to finish nearly 14% higher, while WTI was heading for a 15% jump to close above $100 for the first time since April.

Houthis' Attacks on Saudi Oil Facilities

Details of the Attacks

On Thursday, the Houthis said they had attacked several sites in Saudi Arabia, including its largest oil refinery, Ras Tanura, the Rabigh refinery and an Aramco facility in Abqaiq, while a Saudi-led coalition said it had intercepted a cruise missile launched by the Houthis towards the kingdom's western region.

Market Reactions and Expert Analysis

“Continued kinetic action around the Strait of Hormuz amidst doubts of a viable diplomatic pathway are keeping oil prices elevated in expectation of an escalation of the conflict in coming weeks,” said MST Marquee Head of Energy Research Saul Kavonic.

Diplomatic Efforts and Regional Security

US-Iran Communications

US President Donald Trump said on Thursday that Vice President JD Vance had reached out to Iran to help the country get medical supplies, after US media reported Vance had written to Tehran's top security official to revive peace talks.

Iran has received a letter from Vance but it has not responded to it yet, the country's semi-official Tasnim news agency reported, while adding that Tehran wants the US to meet its conditions and "any position that contradicts this framework is unacceptable."

Incidents in the Strait of Hormuz

Tanker Explosions and Security Threats

Meanwhile, Iran's Revolutionary Guards said three tankers hit sea mines, exploded and caught fire while attempting to use an unauthorised route south of the Strait of Hormuz.

Corporate Responses

Amid security concerns in the region, ExxonMobil and Chevron have cancelled plans for their executives to travel to the United Arab Emirates' biggest oil show next week, two sources familiar with the developments told Reuters.

(Reporting by Helen Clark; Editing by Sonali Paul)