Brent Tops $110 As Iran Tensions, Tanker Attacks Raise Supply Fears

Global crude oil prices advanced on Wednesday as renewed attacks on shipping vessels and energy infrastructure across the Middle East raised fears of prolonged supply disruptions.

Brent crude futures climbed 1.4% to $110.40 per barrel, while US West Texas Intermediate (WTI) crude gained 1.4% to $99.20 per barrel.

The gains followed a volatile trading session as investors assessed escalating geopolitical risks and potential interruptions to oil shipments.

Concerns have extended beyond the Strait of Hormuz, with attacks threatening other important shipping routes and crude-loading facilities.

Tanker Attacks, Saudi Oil Facilities Raise Concerns

Market anxiety intensified after a supertanker reportedly struck a sea mine south of the Strait of Hormuz and caught fire.

Iran's Revolutionary Guards Navy claimed the vessel had violated Iranian regulations, according to local media reports.

Shipping intelligence firm Kpler recorded at least 18 vessel attacks over two weeks.

Analysts have warned that attacks had spread towards the Gulf of Oman, threatening oil-loading operations outside the Persian Gulf.

Ship-to-ship transfers, which have helped maintain regional exports during the conflict, could also face interruptions.

Meanwhile, Yemen's Houthi movement claimed responsibility for Monday's attacks targeting Saudi Aramco's Yanbu facility, the Shaybah oilfield and airports in Riyadh and Abha.

The incidents have heightened concerns about the security of Saudi Arabia's energy infrastructure.

Iran Peace Talks Uncertainty Raises Volatility

Oil prices had retreated on Tuesday following discussions between Iranian President Masoud Pezeshkian and Pakistan's army chief over possible mediation efforts. However, expectations of a diplomatic breakthrough remain uncertain.

Iranian Foreign Minister Abbas Araqchi said Tehran had received no response from Saudi Arabia or the Houthis regarding its offer to facilitate peace negotiations.

The absence of progress has sustained a geopolitical risk premium in crude prices. Brent settled 0.69% lower at $108.79 on Tuesday after reaching a five-month high of $111.99.

The expiring November WTI contract closed 1.8% lower at $101.79 per barrel. Further attacks could intensify supply concerns, while meaningful diplomatic progress may ease pressure on global oil markets.