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Finance

US oil prices fall as investors gauge risks to Mideast supply

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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US Oil Prices Fall Amid Investor Concerns Over Middle East Supply Risks

Market Reactions and Geopolitical Developments Impacting Oil Prices

By Yuka Obayashi

US Crude Futures Experience Decline

TOKYO, Oct 29 (Reuters) - Benchmark US crude futures fell around $1 on Thursday, paring some of the previous day's gains, as traders weighed the risk that escalating Middle East conflict could further disrupt regional energy supplies.

US West Texas Intermediate (WTI) crude futures were down 92 cents, or 0.9%, at $101.86, after dropping as low as $101.75 a barrel. They had risen 3% on Wednesday.

Escalating Middle East Tensions

Yemen's Houthis Attack Aden Airport

Yemen's Houthis attacked Aden airport on Wednesday, government forces said, after the Iran-aligned group warned people to evacuate it as fighting surged in the impoverished country ensnared in the Middle East conflict.

Strikes on Saudi Oil Infrastructure

On Tuesday, the Houthis said they hit Saudi Arabia's biggest oil refinery with a missile, as they stepped up strikes against the world's second-largest crude producer after the US.

Saudi Response to Attacks

Saudi authorities did not immediately confirm the strike on the 550,000-barrel-per-day facility.

Diplomatic Efforts and Negotiations

Qatari mediators have presented Iran with a new draft deal to end the war with the US and Israel, an official briefed on the negotiations said, but a senior Iranian official described them only as unacceptable ideas that did not amount to an offer.

(Reporting by Yuka Obayashi; Editing by Clarence Fernandez)

Key Takeaways

  • WTI fell ~92 cents to $101.86 after a 3% rally a day earlier, as market sentiment turned cautious amid renewed Middle East tensions (apnews.com)
  • Houthis launched missile strikes on Aden airport amid escalated Saudi–Houthi clashes—raising war‑risk premium along critical Red Sea/Bab el‑Mandeb shipping routes (apnews.com)
  • Diplomatic efforts via Qatar produced a draft ceasefire deal to present to Iran—but Tehran rejected it as “unacceptable,” maintaining geopolitical uncertainty and pressure on oil markets (boereport.com)

References

Frequently Asked Questions

Why did US oil prices fall on Thursday?
US oil prices fell as traders assessed risks to Middle East energy supplies from increased conflict, despite previous gains.
What is the current price of WTI crude futures?
WTI crude futures dropped 92 cents, or 0.9%, to $101.86 per barrel.
What events in the Middle East are influencing oil prices?
Recent events include Houthi attacks in Yemen and a missile strike on Saudi Arabia's largest oil refinery.
Are there any negotiations to end the Middle East conflict?
Qatari mediators presented Iran a new draft deal, but Iranian officials found the proposals unacceptable.
How much did US oil prices rise on Wednesday?
On Wednesday, US crude futures rose by 3%.

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