Brent hits five-month high as attacks on ships, Saudi sites fuel supply worries

Brent crude futures climbed to $111.75 a barrel on Tuesday, a five-month peak, as dealers built a geopolitical risk premium into prices. Business Recorder reported that the rise followed Houthi claims of strikes on Saudi energy facilities, airports and military installations, including an Aramco site in Yanbu. Saudi authorities had not confirmed those claims, and Reuters said it could not verify them independently.

US crude also gained sharply, with the November West Texas Intermediate contract, which expires on Tuesday, last trading at $109.08, a gain of $5.42 or 5.2 per cent. ING analysts said in a Tuesday note that a sizeable premium is being priced in, and that it would likely fade slowly if flows continued undisrupted, though they saw no such signs yet.

Kpler said on Monday that at least 18 vessels had reportedly been attacked over two weeks, a development that keeps the premium in place. Business Recorder also referred to a Monday attack by the Houthis on a camp that trains government security personnel in Shabwa province, which left 58 dead and more than 200 wounded. The renewed violence has heightened fears over regional stability and ongoing risks to energy supply, with prices still above $100 a barrel.