Brent crude rose $1.36 to $115.24 a barrel on Wednesday after Yemen’s Houthis said they had hit Saudi Arabia’s largest oil refinery with a missile, Reuters reported.
U.S. benchmark West Texas Intermediate crude gained $1.62, or 1.6%, to $101.52 a barrel as of early morning trading in Europe.
The gains reversed part of Tuesday’s slide, when prices dropped nearly $2 as talks in the Middle East helped ease worries about supply, CNBC noted.
Houthi military spokesman Yahya Saree said on X that the group struck the Ras Tanura refinery in Saudi Arabia’s Eastern Province with a ballistic missile, causing “massive fires,” AFP reported.
Saudi authorities did not immediately confirm a strike on the 550,000-barrel-per-day facility, which also includes a shipping terminal on the Gulf.
Maritime security firm Vanguard said a fire was reported in the Ras Tanura area early Tuesday. “The fire has reportedly been contained, while the extent of damage and any impact on oil-loading operations remain unclear at current,” it said.
The Saudi-led coalition fighting the Houthis said it shot down three missiles fired toward the Eastern Province and intercepted two ballistic missiles aimed at Riyadh, where explosions shook office windows.
The Houthis also said they attacked the Saudi Defense Ministry building in Riyadh and military aircraft at Najran and Khamis Mushait, with no immediate Saudi confirmation of those claims, Reuters reported.
Nearly all of Saudi Arabia’s oil exports flow through two ports, Ras Tanura on the Gulf and Yanbu on the Red Sea.
Ras Tanura was shut for a period early in the Iran war as a precaution. The complex has been repeatedly targeted by strikes blamed on Iran, including a drone attack in early March that forced a partial shutdown.
Traders Watch Iran and the Midterms
Strategists at Dutch bank ING said the market is pricing in a greater chance of renewed escalation in the region, according to Reuters.
“Oil prices remain elevated as the market waits for greater clarity on President (Donald) Trump’s next move toward Iran,” the ING strategists said.
“If we get past the elections without renewed strikes on Iran, that might be enough for the market’s risk premium to start eroding,” they added, referring to the Nov. 3 midterm elections.
Supply data offered some support. Industry figures from the American Petroleum Institute showed U.S. crude stocks fell by 2.03 million barrels in the week ended Oct. 23, against expectations of a 15,000-barrel build.
Government figures from the Energy Information Administration are due later Wednesday. OPEC+ producers meet Sunday and are expected to hold their December output targets steady, according to people familiar with the matter.
For American drivers, the national average for regular gasoline stood at $4.247 a gallon on Wednesday, according to AAA. Prices were about $3 a gallon before the Iran war began in late February.
The fighting between Saudi Arabia and the Houthis reignited in July. The Iran-backed group declared a maritime blockade of the kingdom, then seized stretches of Red Sea coastline in a September offensive.
Attacks intensified this month, forcing the cancellation of major events and closing Riyadh’s airport for two weeks, AFP reported. On Monday, Egypt’s parliament authorized defensive military support for Saudi Arabia, a move a Houthi official called a declaration of war.
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