Global crude oil benchmarks rallied significantly on Wednesday, jumping by over $1 per barrel as deepening military tensions across the Middle East renewed fears of widespread energy supply disruptions. The price surge was further reinforced by fresh industry data indicating a sharper-than-expected drawdown in United States crude and fuel inventories.
Brent crude futures climbed $1.59, or 1.5 percent, to reach $110.38 a barrel in early Asian trading hours, marking a near five-month peak. Simultaneously, US West Texas Intermediate (WTI) crude gained $1.36, or 1.4 percent, trading at $99.18 per barrel. The upward movement followed a volatile session where prices briefly eased amid reports of diplomatic mediation involving Pakistani and Qatari delegations in Tehran.
Energy analysts emphasized that while diplomatic headlines temporarily cooled sentiment, fundamental supply-chain risks remain acute. Maritime intelligence firm Kpler confirmed at least 18 naval attacks targeting commercial vessels over the past fortnight, with analysts warning that Iranian interdictions and proxy strikes are extending beyond the Strait of Hormuz into the Gulf of Oman, threatening crude loadings and ship-to-ship transfer hubs across the region.
The supply risk was underscored by new strikes inside Saudi Arabia, where Houthi forces claimed responsibility for targeting a Saudi Aramco installation at Yanbu, the Shaybah oilfield, and commercial airports in Riyadh and Abha.
Meanwhile, intense fighting in Yemen saw government troop casualties rise to 73 in a single day following Houthi offensives. On the supply side, the market received additional bullish momentum from data released by the American Petroleum Institute (API), which revealed that US crude stockpiles dropped by 4.9 million barrels for the week ending October 16. With global diesel shortages driving fuel prices higher, US Department of Energy officials confirmed active engagements with international refiners to ramp up operational output.
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