Oil prices rose on Wednesday after Tehran-backed Houthis attacked Saudi Arabia's largest refinery, intensifying supply concerns as the US-Iran standoff and a likely deadlock in Israel's election deepened uncertainty in the region.
International benchmark Brent crude futures rose $1.50, or 1.32%, to $115.59 per barrel, while US West Texas Intermediate crude futures gained $1.47, or 1.47%, to $101.37 per barrel. The Houthis said on Tuesday they had attacked Saudi Arabia's Ras Tanura refinery with a ballistic missile, raising worries of an escalation in the regional conflict.
US President Donald Trump, speaking at a campaign rally in Texas on Tuesday, said the war with Iran would end on his terms and stressed that any agreement must ensure Iran would never possess a nuclear weapon. His remarks followed earlier comments that he was weighing whether to reach a deal with Tehran or pursue further military action, keeping investors on edge over the possibility of renewed strikes.
Concerns over disruptions to oil flows have kept a geopolitical risk premium embedded in crude prices, with traders closely monitoring developments in the region.
Adding to the uncertainty, Israel's election appeared headed for a political stalemate. Preliminary exit polls showed neither Prime Minister Benjamin Netanyahu nor his main challenger, Gadi Eisenkot, securing a clear path to a governing majority, with both blocs falling short of the 61 seats required to control the 120-member parliament. The result raises the prospect of protracted coalition negotiations and could affect Israel's approach toward Iran.
Analysis
Why This Matters
- Oil price rises affect global fuel costs and can feed inflation, hitting consumers and businesses worldwide.
- The Houthi attack on a major Saudi refinery signals a potential widening of the Middle East conflict, threatening energy infrastructure.
- A protracted Israeli election stalemate could delay decisions on Iran policy, adding to regional instability.
Background
The Houthis, an Iran-backed group based in Yemen, have repeatedly targeted Saudi energy facilities during the country's years-long war in Yemen. The attack on the Ras Tanura refinery, one of the world's largest, comes amid heightened US-Iran tensions over Tehran's nuclear program. Israeli politics remain fragmented, with no clear majority emerging from Tuesday's election, prolonging a period of political uncertainty.
What to Watch
- Whether Trump follows through on negotiations or military action against Iran, and how Tehran responds.
- Coalition negotiations in Israel, which could stabilise or further complicate the country's leadership.
- Any further Houthi attacks on Saudi oil infrastructure, which would likely push crude prices higher.
Checked
12 claims in this story checked against 1 source: 10 supported.
Show each claim
- SupportedOil prices rose on Wednesday after Houthi attacks on Saudi Arabia's largest refinery.US Top News and Analysis: “Oil prices climbed Wednesday as investors weighed the prospect of a prolonged and widening Middle East conflict after Tehran-backed Houthis attacked Saudi Arabia's largest refinery.”
- SupportedThe refinery attack raised supply concerns.US Top News and Analysis: “Oil prices rise as Houthi attacks on Saudi Arabian refinery raise supply worries.”
- SupportedBrent crude topped $115 per barrel.US Top News and Analysis: “International benchmark Brent crude futures rose $1.50, or 1.32%, to $115.59 per barrel”
- Partly supportedThe US-Iran conflict and Israel's election deadlock added to supply worries.US Top News and Analysis: “Concerns over disruptions to oil flows have kept a geopolitical risk premium embedded in crude prices, with traders closely monitoring developments in the region. Adding to the uncertainty, Israel's election appeared headed for a political stalemate”
- SupportedThe US-Iran conflict and likely Israeli election deadlock deepened uncertainty in the region.US Top News and Analysis: “investors weighed the prospect of a prolonged and widening Middle East conflict”
- SupportedBrent crude futures rose $1.50, or 1.32%, to $115.59 per barrel.US Top News and Analysis: “International benchmark Brent crude futures rose $1.50, or 1.32%, to $115.59 per barrel”
- SupportedUS West Texas Intermediate futures rose $1.47, or 1.47%, to $101.37 per barrel.US Top News and Analysis: “U.S. West Texas Intermediate crude futures gained $1.47, or 1.47%, to $101.37 per barrel.”
- SupportedThe Houthis said on Tuesday they attacked the Ras Tanura refinery with a ballistic missile.US Top News and Analysis: “The Houthis said on Tuesday they had attacked Saudi Arabia's Ras Tanura refinery with a ballistic missile”
- Partly supportedThe report identifies the speaker as US President Donald Trump.US Top News and Analysis: “Speaking at a campaign rally in Texas on Tuesday, Trump said the conflict could be brought to a swift conclusion”
- SupportedTrump said the war with Iran would end on his terms and that any agreement must ensure Iran never possessed a nuclear weapon.US Top News and Analysis: “Trump, meanwhile, said that the war with Iran would end on his terms, while insisting that Tehran must be prevented from acquiring nuclear weapons.”
- SupportedPreliminary exit polls showed neither Netanyahu nor Eisenkot had a clear path to a governing majority, and both blocs fell short of 61 seats in the 120-member parliament.US Top News and Analysis: “Preliminary exit polls showed the rival blocs falling short of the 61 seats required to control Israel's 120-member parliament”
- SupportedThe election result could affect Israel's approach toward Iran.US Top News and Analysis: “raising the prospect of protracted coalition negotiations and clouding the outlook for Israel's approach toward Iran.”
