Brent tops $112, its highest since May, after new attacks on Saudi Arabia
A drone strike on a Saudi oil field killed two people, and the U.S. ordered some diplomats to leave the kingdom.
Brent crude rose about 3% to above $112 a barrel Thursday morning, its highest since May, and U.S. West Texas Intermediate gained nearly 3% to about $100. The move followed new Houthi attacks in Saudi Arabia, including a drone strike on a Saudi oil field that killed two people and attacks on civilian targets.
The United States ordered non-emergency government employees and their families to leave Saudi Arabia, citing the rising attacks. Iran's Revolutionary Guards said four vessels involved in what it called illegal oil transfers in the northern Gulf caught fire after being tracked by its forces, and that three more ships struck mines west of the Strait of Hormuz. Separately, the U.S. and Israel have drawn up plans for renewed strikes on Iran after next month's midterm elections, The New York Times reported (reported, not independently confirmed).
Analysts estimate Middle East crude exports recently ran near 17 million barrels a day, close to pre-conflict levels, but the attacks on shipping and Saudi infrastructure are more than offsetting that supply. For background, read Wednesday's oil story and this week's Chain, Crude & Chips sidebar.
