Brent crude rose 3% to $112 a barrel on Thursday, its first time at that level since 18 May, after attacks on Saudi targets and tankers in the Strait of Hormuz raised fears of further disruption to global crude supply. The move took prices to a five-month high.
Yemeni Houthis attacked a civilian airport in Dammam on Wednesday, killing two people and wounding eight, and a drone strike hit a Saudi oilfield, killing two more. Iran’s Islamic Revolutionary Guard Corps said four vessels were hit and caught fire in the northern Gulf, and that three others collided with mines west of the strait.
Supply concerns return
Oil peaked at $126 in April during the conflict, fell below $100 in late May and reached $71 at the start of July on ceasefire hopes. Prices climbed again after a US-Iran memorandum of understanding collapsed and hostilities resumed.
Kpler data show Persian Gulf oil exports have risen above prewar levels, partly because of overland pipeline flows to the Red Sea and the Gulf of Oman.
Diplomats and staff pulled back
The United States ordered some diplomats and family members to leave Saudi missions. Saudi Aramco told staff to evacuate its Dhahran headquarters and work remotely.
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Global stocks fell on expectations of higher inflation and borrowing costs. Europe’s Stoxx 600 lost 1%, the FTSE 100 fell 0.7%, Japan’s Nikkei 225 dropped 2.7%, South Korea’s Kospi slid 3.5% and Hong Kong’s Hang Seng fell 3%.
Related: Brent rises above $110 as Houthi attacks hit Saudi Arabia · Brent rises to $109.64 as tanker hit by mine near Hormuz
