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Oil prices rise more than 1% as supply concerns linger
23 Oct, 2026 / 12:38 PM / Oil Prices

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Oct 23 (Reuters) - Oil prices rose over 1% on Friday after Houthi attacks in Saudi Arabia stoked concerns of further disruption to energy supplies from the Middle East.

Brent crude futures climbed $1.30, or 1.2%, to $114.47 a barrel ‌as of 0639 GMT, while US West Texas Intermediate crude futures rose $1.37, or 1.4%, to $100.84.

Brent, which settled at its highest since May 4 on Thursday, is set to close higher for a third successive week, while WTI is on track to finish higher for a second straight week.

Saudi Aramco (2222.SE) ⁠on Thursday ordered the evacuation of its headquarters in Dhahran on the Gulf near Bahrain, Reuters reported, as fighting intensified between the world's largest crude exporter and Yemen-based Houthis.

"Markets are increasingly worried about renewed escalation in the Persian Gulf, a scenario that could threaten oil flows that have so far remained remarkably resilient," ING analysts said in a note on Friday.

"Re-escalation seems the most likely path. Even if tensions don't re-escalate, the mere possibility is likely to keep a sizeable geopolitical risk ‌premium ⁠embedded in prices."

Clashes between the Houthis and a Saudi-led coalition that backs Yemen's internationally recognised government have raged since the Iran-aligned Houthis pushed towards Bab el-Mandeb, a shipping chokepoint at the mouth of the Red Sea.

"The key factors to monitor now are the extent ⁠of actual disruption and the time needed to restore operations, as these will ultimately determine how much of a supply risk premium the market is willing to pay," said Linh ⁠Tran, an analyst at XS.com.

"If attacks persist and delay deliveries, elevated prices will have a firmer foundation."

In Libya, an oil pipeline valve from the Hamada and ⁠Tahara oilfields to Zawiya port has been shut, leading to a reduction in production at both fields, the head of the National Oil Corporation told Reuters on Thursday.