Crude oil prices moved closer to the $100-per-barrel mark on Tuesday as renewed attacks in the Middle East raised concerns about possible disruptions to global energy supplies.
Brent crude climbed to $99.46 per barrel, its strongest level since July 24, before retreating to around $97 later in the day. US West Texas Intermediate also reached its highest price since June 8.
The latest price increase followed attacks by Yemen’s Iran-backed Houthi movement on several locations in southern Saudi Arabia. The group said it targeted sites in Khamis Mushait, Abha, Najran and Jazan with drones and missiles.
The attacks have heightened concerns because some of the affected areas contain important energy facilities. Jazan, for instance, hosts a major refinery and power plant, while oil distribution infrastructure is also located in areas targeted by the Houthis.
Saudi authorities reported fires following the attacks and said 73 people were injured, including women and children.
The renewed violence has added fresh pressure to an already tense regional situation involving Iran, the United States and Israel. Traders are particularly concerned about the potential impact on oil production, transportation and shipping routes.
The Strait of Hormuz remains a major focus for the energy market because of its importance to international oil trade. A prolonged disruption to traffic through the waterway could have significant consequences for global crude supplies and prices.
The Houthis have previously targeted shipping in and around the Red Sea, while Saudi Arabia has spent years fighting the group as part of a regional coalition involved in the Yemen conflict.
The latest escalation comes as tensions between Washington and Tehran continue to intensify. Restrictions on energy shipments and growing pressure around regional shipping routes have already contributed to tighter supplies of crude and refined petroleum products in some markets.
In the United States, diesel prices have climbed above $5.90 per gallon, according to a Reuters report cited in the original account.
US President Donald Trump, however, has predicted a sharp decline in oil prices if the conflict with Iran ends in a US victory. He said prices could eventually fall below $2 per gallon.
For oil-importing countries such as Nigeria, sustained increases in international crude prices could translate into higher costs for petroleum products if global supply disruptions persist.
Nigeria could also benefit from stronger crude export earnings if its domestic production remains stable and international prices stay elevated. However, higher global prices could simultaneously increase pressure on consumers through more expensive refined petroleum products.
Market participants are now watching developments in Saudi Arabia, Iran and the Strait of Hormuz closely as they assess whether the latest attacks will lead to wider disruptions.
Any further escalation affecting oil facilities or major shipping routes could push crude prices above the $100 threshold and increase uncertainty across global energy markets.
